US close: Stocks retreat from record highs ahead of payrolls data

(Sharecast News) - US stocks were in the red on Thursday with all three Wall Street benchmarks pulling back from record highs.

Labour market data and a flurry of retailer earnings - along with a continued surge in the price of bitcoin - were dominating headlines during the session, with investors choosing to take profits ahead of the all-important non-farm payrolls release on Friday.

The Dow slipped 0.55% to 44,7651.71, the S&P 500 fell 0.19% to 6,071.11, while the Nasdaq fell 0.18% to 19,700.26 - with the latter two indices snapping a four-day winning streak.

"Investor sentiment remains positive, and everyone expects a rally into Christmas," said David Morrison chief market analyst at Trade Nation. "There's been a sharp increase in leveraged positions and option plays favouring a continuation of the rally, and it rather feels as if everyone has rushed to the same side of the boat. History tells us that in these situations, it's wise to wear a lifejacket."

Data takes centre stage

On the macro front, the Labor Department reported that jobless claims hit 224,000 last week, up from 213,000 in the previous week and ahead of expectations of 215,000.

Challenger, Gray & Christmas revealed that US employers announced 57,727 job cuts in November, up from October's 55,597 print and 45,510 at the same time a year earlier for the fourth-highest November reading since 2008. For the year as a whole, companies announced 722,566 job cuts, up 5.2% from 686,860 announced through November of last year.

Finally, the US trade deficit narrowed to $73.8bn in October, according to the Bureau of Economic Analysis, down from an upwardly revised print of $83.8bn gap in September and better than expectations for a reading of $75.0bn. Exports declined 1.6% to $265.7bn, while imports contracted 4% to $339.6bn.

Looking ahead to Friday's session, non-farm payrolls are expected to have climbed by 200,000 in November, according to the consensus forecast, following a gain of just 12,000 in October - when data was distorted by hurricanes and strikes.

"We look for nonfarm payrolls to have risen 205,000 [...] with about 38,000 returning strikers and 60,000 workers impacted by Hurricanes Helene and Milton contributing to the rebound in job growth," said Nancy Vanden Houten, lead US economist at Oxford Economics.

Market movers

Clothing retailer American Eagle slumped 14% on the back of disappointing revenues for the third quarter and weak forward guidance for the holiday season, pointing to comparable sales growth of just 1% over the current quarter.

Shares in discount retailer Five Below jumped 10% as a result of better-than-expected earnings and profits in the third quarter.

Sector peer Dollar General finished more or less flat after reducing the top end of its profit guidance for the full year.

Meanwhile, supermarket group Kroger pushed higher after topping quarterly sales estimates on the back of increased demand for fresh, cheaper groceries.

Dow Jones - Risers

3M Co. (MMM) $133.33 2.21% Merck & Co. Inc. (MRK) $103.55 2.15% McDonald's Corp. (MCD) $299.48 1.48% Microsoft Corp. (MSFT) $442.62 1.19% Coca-Cola Co. (KO) $62.97 1.14% Walmart Inc. (WMT) $95.30 0.90% JP Morgan Chase & Co. (JPM) $245.47 0.85% Cisco Systems Inc. (CSCO) $60.02 0.67% Chevron Corp. (CVX) $159.33 0.64% Travelers Company Inc. (TRV) $263.19 0.57%

Dow Jones - Fallers

Intel Corp. (INTC) $20.80 -5.28% Unitedhealth Group Inc. (UNH) $578.97 -5.21% Walgreens Boots Alliance, Inc. (WBA) $8.47 -3.09% Salesforce.Com Inc. (CRM) $361.25 -1.76% Dow Chemical Co. (DOW) $42.17 -1.54% Amgen Inc. (AMGN) $274.33 -1.41% Caterpillar Inc. (CAT) $394.43 -1.13% Boeing Co. (BA) $156.63 -1.02% American Express Co. (AXP) $300.63 -0.68% Johnson & Johnson (JNJ) $149.48 -0.63%

S&P 500 - Risers

American Airlines Group (AAL) $17.38 16.80% Brown Forman Corp. Class B (BF.B) $45.35 10.68% United Airlines Holdings Inc (UAL) $102.44 3.21% Hormel Foods Corp. (HRL) $32.88 2.72% Alaska Air Group Inc. (ALK) $55.88 2.70% Delta Airlines Inc. (DAL) $65.77 2.35% 3M Co. (MMM) $133.33 2.21% FMC Technologies Inc. (FTI) $31.95 2.17% Merck & Co. Inc. (MRK) $103.55 2.15% Chipotle Mexican Grill Inc. (CMG) $65.22 2.08%

S&P 500 - Fallers

Synopsys Inc. (SNPS) $515.29 -12.37% Cadence Design Systems Inc. (CDNS) $303.79 -6.39% Ball Corp (BALL) $57.49 -5.75% Microchip Technology Inc. (MCHP) $58.25 -5.50% Fiserv Inc. (FI) $204.00 -5.49% General Electric Co. (GE) $172.91 -5.33% Intel Corp. (INTC) $20.80 -5.28% Unitedhealth Group Inc. (UNH) $578.97 -5.21% Applied Materials Inc. (AMAT) $172.03 -5.04% Ansys Inc. (ANSS) $344.39 -4.72%

Nasdaq 100 - Risers

American Airlines Group (AAL) $17.38 16.80% Vodafone Group Plc ADS (VOD) $9.05 3.31% Tesla Inc (TSLA) $369.49 3.23% Gilead Sciences Inc. (GILD) $93.39 1.97% JD.com, Inc. (JD) $36.41 1.90% Regeneron Pharmaceuticals Inc. (REGN) $767.90 1.81% Expedia Group Inc. (EXPE) $191.01 1.44% Ross Stores Inc. (ROST) $156.61 1.38% Baidu Inc. (BIDU) $85.74 1.25% Microsoft Corp. (MSFT) $442.62 1.19%

Nasdaq 100 - Fallers

Synopsys Inc. (SNPS) $515.29 -12.37% Cadence Design Systems Inc. (CDNS) $303.79 -6.39% Microchip Technology Inc. (MCHP) $58.25 -5.50% Fiserv Inc. (FI) $204.00 -5.49% Intel Corp. (INTC) $20.80 -5.28% Applied Materials Inc. (AMAT) $172.03 -5.04% Lam Research Corp. (LRCX) $75.21 -3.90% KLA-Tencor Corp. (KLAC) $642.61 -3.54% Qurate Retail Inc. (QRTEA) $0.38 -3.52% Align Technology Inc. (ALGN) $227.81 -3.18%