Investing.com - U.S. stocks were slammed into the close Thursday despite the release of upbeat U.S. jobs and trade balance data, as fiscal cliff worries continue to weigh.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.94%, the S&P 500 index gave back 1.22%, while the Nasdaq Composite index plunged 1.42%.
Stocks gained ground after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 3 fell to a seasonally adjusted 355,000, compared to expectations for an increase to 370,000.
A separate report showed that the U.S. trade deficit unexpectedly narrowed to USD41.5 billion in September from a deficit of USD43.8 billion in August, whose figure was revised from a previously reported deficit of USD44.2 billion.
But investors remained cautious amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth.
Financial stocks were broadly higher, led by Bank of America, up 3.25%, and closely followed by JP Morgan, whose shares rallied 2.45%, while Citigroup and Goldman Sachs jumped 1.53% and 1.14% respectively.
JP Morgan said earlier that U.S. regulators approved a plan for the company to use its capital to buy back its stock in the first quarter of 2013.
Among earnings, food and beverage company Dean Foods topped expectations and raised its full-year forecast, sending shares soaring 6.65%.
In the tech sector, Qualcomm, the largest seller of mobile-phone chips, was up 7.60% after forecasting sales and profit that beat projections.
On the downside, Kohl's tumbled 2.37%, even as the department store chain posted slightly higher earnings and forecast same-stores sales will rise during the current holiday quarter.
McDonald's added to losses, with shares dropping 0.66% after the fast-food giant posted its first monthly sales drop in nine years.
Other stocks in focus included Walt Disney and Duke Energy, due to report results later in the day.
At the close of European trade, the EURO STOXX 50 was neutral at 0% change, France’s CAC 40 gave back 0.06%, while Germany’s DAX 30 fell 0.39%.
Investors are looking forward to consumer sentiment numbers from the U.S. and German CPI figures on Friday.