By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks fell Thursday as the U.S.
dollar gained strength, hitting dollar-denominated commodities and
related stocks a day ahead of the September jobs report.
"All eyes are on tomorrow's jobs report with investors looking
for some improvement," said Michael Sheldon, chief market
strategist at RDM Financial Group.
After rising to within a few points of the psychologically
significant 11,000 level, the Dow Jones Industrial Average (DJI)
was off 22.55 points, or 0.2%, to 10,945.1, with 16 of its 30
components in retreat. The declines were led by 3M Co. (MMM) and
Alcoa Inc. (AA), the latter slated to release third-quarter
financial results after the close, the first blue chip to
report.
The S&P 500 Index (SPX) fell 2.78 points, or 0.2%, to
1,157.19, with natural-resource firms down the most among its 10
industry groups.
The Nasdaq Composite Index (RIXF) rose half a point to
2,381.57.
Decliners edged past advancers on the New York Stock Exchange,
where volume totaled 594 million as of 2:45 p.m. Eastern time.
The dollar rebounded against the euro, which had pushed to a new
eight-month high above $1.40 after European Central Bank President
Jean-Claude Trichet's remarks were deemed not excessively
bearish.
The dollar index (DXY), which contrasts the greenback with six
currency rivals, stood at 77.458, up from its 77.397 level in late
New York trade Wednesday.
Crude-oil futures fell $1.56 to finish at $81.67 a barrel on the
New York Mercantile Exchange, while gold futures fell $12.70 to end
at $1,335 an ounce.
The weekly jobless-claims data came a day before the release of
the government's monthly employment report, with economists
expecting the unemployment rate to climb to 9.7% in September from
9.6% in August.
Retailers including Abercrombie & Fitch Co. (ANF) and
Limited Brands Inc. (LTD) reported better-than-anticipated monthly
sales.
PepsiCo Inc. shares (PEP) fell 3.2% after the beverage company
lowered its earnings forecast. .
"Overall market internals have been improving in recent weeks,
and barring a major development it appears markets are likely to
head higher into the fall," said RDM Financial's Sheldon.