Stocks Close Modestly Lower Following Lackluster Session - U.S. Commentary

(RTTNews) - Stocks turned in a lackluster performance throughout the trading day on Thursday before ending the session modestly lower. A mixed batch of economic data contributed to the choppy trading.

The major averages all ended the day in the red, although the Dow dipped only 4.76 points or less than a tenth of a percent to 16,264.23. The Nasdaq fell 22.35 points or 0.5 percent to 4,151.23 and the S&P 500 edged down 3.52 points or 0.2 percent to 1,849.04.

The lack of direction shown for most of the day came as traders digested the latest batch of U.S. economic data, including reports on weekly jobless claims and pending home sales.

The Labor Department released a report before the start of trading showing that initial jobless claims unexpectedly fell to a nearly four-month low last week.

The report showed that initial jobless claims fell to 311,000 in the week ended March 22nd, a decrease of 10,000 from the previous week's revised figure of 321,000.

While the decrease surprised economists and points to strength in the labor market, the data also renewed concerns about the outlook for monetary policy.

Meanwhile, the National Association of Realtors released a report showing that pending home sales fell for the eighth straight month in February.

NAR said its pending home sales index dropped by 0.8 percent to 93.9 in February after edging down by 0.2 percent to a downwardly revised 94.7 in January.

With the decrease, NAR said the pending home sales index fell to its lowest level since hitting 92.2 in October of 2011.

The Commerce Department also released a report showing an upward revision to fourth quarter GDP growth, although the data was largely shrugged off as old news.

Sector News

While many of the major sectors ended the day showing only modest moves, considerable weakness was visible among brokerage stocks. The NYSE Arca Broker/Dealer Index fell by 1.2 percent to its lowest closing level in over a month.

Online brokers E*Trade (ETFC) and TD Ameritrade (AMTD) turned in two of the worst performances, falling by 3.1 percent and 2.7 percent, respectively.

Banking stocks also came under pressure on the day, dragging the Dow Jones Banks Index down by 1.1 percent. Citigroup (C) helped lead the sector lower, tumbling by 5.4 percent after failing the Federal Reserve's stress test.

Airline, chemical, and semiconductor stocks also moved to the downside on the day, while notable strength was visible among natural gas and telecom stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index advanced by 1 percent, while China's Shanghai Composite Index dropped by 0.8 percent.

The major European markets also turned mixed over the course of the session. While the German DAX Index closed just above the unchanged line, the U.K.'s FTSE 100 Index dipped by 0.3 percent and the French CAC 40 Index edged down by 0.1 percent.

In the bond market, treasuries moved moderately higher on the day, extending a recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.672 percent.

Looking Ahead

Trading on Friday may be impacted by the release of another batch of U.S. economic data, including reports on personal income and spending and consumer sentiment.