NEW YORK (AP) — Stocks edged lower Thursday, backing away from early gains, as uncertainty built up ahead of a key report on the labor market.
The Dow Jones industrial average fell 19.07, or 0.2 percent, to close at 10,948.58. The Standard & Poor’s 500 index fell 1.91, or 0.2 percent, to 1,158.06, while the Nasdaq composite rose 3.01, or 0.1 percent, to 2,383.67.
The Dow Jones industrial average came within two points of 11,000 before turning lower for most of the day. The Dow hasn’t traded above that level since May 4, about a week after reaching its highest point of the year.
Slightly better news on claims for unemployment insurance gave stocks an early lift, but the gains faded quickly as traders opted for caution ahead of Friday’s employment report from the Labor Department, the most crucial piece of news on the economic calendar.
Stocks are coming off a historically strong performances in September, and analysts say the market will need significant doses of positive news on the economy, corporate earnings or preferably both before heading decisively higher again. The Dow Jones industrial average gained 10.4 percent in September, but is still 2.1 percent below its 2010 high reached on April 26.
In economic news, first-time claims for unemployment insurance fell last week, a better result than analysts were expecting.
Retailers including Macy’s Inc., Abercrombie & Fitch and Limited Brands Inc. reported better-than-expected monthly sales, which initially provided a lift to the market.
The retail sales news was positive, but “there’s not enough to move the needle given that we’ve got the big jobs report tomorrow,” said Hank Smith, chief investment officer at Haverford Investments.
Falling stocks narrowly outpaced rising ones on the New York Stock Exchange, where volume came to 915 million shares.
There is a wide range of expectations for how Friday’s jobs report might turn out, said Ed Crotty, chief investor officer at Davidson Investment Advisors. Even upbeat results might not be enough to drive stocks significantly higher.
“If the number is good, there will be skepticism it’s not sustainable,” Crotty said.