By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market was broadly
lower on Thursday following government reports on jobless claims
and retail sales that came in softer than expected.
A jump in oil prices stemming from an armed conflict in Iraq
boosted the energy sector on the S&P 500.
Weekly jobless claims ticked up, while the forecast was for
applications to drop slightly. Retail sales in May rose by less
than forecast, however, the increase in April was revised sharply
upward.
The S&P 500 (SPX) was 4 points, or 0.2%, lower at 1,940.41.
The Dow Jones Industrial Average (DJI) dropped 27 points, or 0.2%,
to 16,817.33. The Nasdaq Composite (RIXF) shed 16 points, or 0.4%,
to 4,315.58.
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action.
In economic news, the number of Americans who applied for
unemployment benefits last week increased slightly but remained
near a post-recession bottom, indicating little change in a
gradually improving U.S. labor market.
Sales at U.S. retailers rose last month on strong demand for
cars, trucks and home-improvement products, but spending tapered
off at many other retailers after a big bump in demand in
April.
Taken together, sales in April and May reflect an economy
growing at a fairly brisk pace in the spring after the U.S.
suffered a sharp contraction in the first quarter. Retail sales
account for about one-third of consumer spending, the main engine
of U.S. economic activity.
In corporate news, shares of Lululemon Athletica Inc. (LULU)
slumped 14% after the maker of high-end yoga gear lowered its
outlook for the year and reported a drop in profit for the first
quarter.
Restoration Hardware Holdings Inc. (RH) rallied 13% after the
upscale home-furnishing retailer late Wednesday reported it swung
to first-quarter profit from a loss a year ago.
Land's End Inc. (LE) shares surged 12% after the retailer said
profit rose nearly 50% in its first quarter as an independent
company after being spun off from Sears Holdings Corp. (SHLD)
Airline companies that were hit badly on Wednesday, continued to
sell off. Delta Air Lines, Inc (DAL) fell 5.6%, making it the worst
performing stock on the S&P 500. Southwest Airlines Co. (LUV)
fell 4.5%, Americal Airlines Group, Inc. (AAL) lost 5.5%.
Energy companies, which tend to react to price swings in oil,
rallied on Thursday. Denbury Resources Inc (DNR) was up 2.6%,
Chesapeake Energy Corporation (CHK) rose 2%.
In other financial markets, Asian stocks closed mostly lower,
while European equities were mixed. Gold (GCQ4) inched higher,
while the dollar was broadly unchanged.
Oil futures were also impacted by the tensions in the Middle
East, where Iraqi militants reportedly took full control of the
northern oil city of Kirkuk and moved closer to the capital,
Baghdad.
The July contract for Brent crude rose 1.9%, while West Texas
Intermediate crude for the same month (CLN4) traded 1.6% higher at
$105.97 a barrel.
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