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U.S. stocks decline as jobless claims climb; Dow Jones sheds 0.30%

Published 01/13/2011, 10:07 AM
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Investing.com – U.S. stocks were down after the open on Thursday, as market sentiment was weighed after official data showed that the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly to the highest level in two months.

During early U.S. trade, the Dow Jones Industrial Average shed 0.30%; the S&P 500 index fell 0.34%, while the Nasdaq Composite index was down 0.17%.

Earlier in the day, official data showed that the number of individuals filing for initial jobless benefits in the week ending January 8 rose unexpectedly to a seasonally adjusted 445K, the biggest one-week jump in six months.

Meanwhile, shares in the commodity sector were lower after crude oil and metal prices declined.

Shares in the biggest U.S. aluminum producer Alcoa dropped 1.45%, oil and gas giant ConocoPhillips shares dip 0.96%, while shares in metal producer Freeport McMoran Copper & Gold slumped 0.82%.

However, shares in the fifth largest U.S. crude oil refiner Marathon Oil soared 7.99% after its board approved a plan to split the company in two.

Meanwhile, shares in global health care firm Merck & Company tumbled 6.33% after it said that it halted an experimental study of one of its most important experimental drugs, the blood clot preventer Vorapaxar.    

In broker news, shares in the world's largest manufacturer of agricultural equipment Deere & Company surged 2.09% after the stock was upgraded by JP Morgan-Chase. 

Shares in the fourth largest U.S. retail broker E*Trade Financial plunged 1.63% after the stock was downgraded by Goldman Sachs.

Meanwhile, shares in the second largest U.S. computer chip-maker Texas Instruments slumped 1.37% after the stock was downgraded by JP Morgan-Chase.

Also Thursday, official data showed that U.S. producer price inflation rose more-than-expected in December while core PPI, which excludes food and energy costs, rose in line with expectations. Meanwhile, a separate report showed that the U.S. trade deficit narrowed unexpectedly in November.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 jumped 0.90%, France’s CAC 40 added 0.40%, Germany's DAX fell 0.18%, while Britain's FTSE 100 was down 0.49%.

Earlier in the day, Spain and Italy completed successful bond auctions, while the European Central Bank left its benchmark interest rate unchanged.

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