Mixed Economic Data Stall Rally

• DJIA down 25.65 (-0.21%) to 12,020.03
• S&P 500 down 2.37 (-0.19%) to 1,244.59
• Nasdaq up 5.86 (+0.22%) to 2,626.20

GLOBAL SENTIMENT

• Nikkei up 1.9%
• Hang Seng up 5.6%
• Shanghai Composite up 2.2%
• FTSE-100 down 0.29%
• DAX-30 down 0.87%

Stocks closed just in the red Thursday, unable to add to Wednesday's aggressive gains as the latest employment data showed weekly jobless claims increased more than expected. In the latest weekly employment data, new applications for unemployment benefits rose last week by 6,000 to a seasonally adjusted 402,000, according to the Labor Department. Economists surveyed by MarketWatch had expected new requests for jobless benefits to total 393,000 in the week ended Nov. 26.

Despite a slightly larger-than-expected jobless claim result, the downside was limited by the Institute for Supply Management's report that the manufacturing index rose 52.7% in November from 50.8% the month before. A survey by MarketWatch had pegged the data at 52%.

Also this morning, spending on construction projects in the U.S. rose 0.8% in October, putting the seasonally adjusted rate at $798.5 billion. That was above analysts' expectations of a 0.3% gains.

Adding optimism over the state of the U.S. economy, a survey of the state of manufacturing activity across the globe showed that the U.S. was the only country to witness growth, albeit at a modest rate. According to the data, Europe is already in a recession, and China is slowing down.

In end-of-day company news:

H&R Block (HRB) is scheduled to release second quarter results after the closing bell. Analysts forecast the company to report a loss of 34 cents a share in the quarter, according to a consensus survey by Thomson Reuters.

GM is likely to see active after-close trading. The largest U.S. automaker earlier reported a 6.9% jump in November U.S. sales on increased demand for pick-up trucks.

Pacific Ethanol (PEIX) says it purchased an additional 7% ownership interest in New PE Holdco LLC, the owner of the four Pacific Ethanol production facilities with a combined annual production capacity of 200 million gallons. The company paid $4.5 million in cash for the additional interest. This purchase brings the company's total ownership interest to 27%.

Lululemon Athletica (LULU) pared some early losses in afternoon trading. Shares had dropped over 14% after the athletic clothing company reported Q3 revenue below analysts' estimates. Revenues were $230.2 mln, below the consensus of $236 mln on Thomson Reuters. EPS was $0.27, two cents ahead of the Street view.

Shares of The Talbots, Inc. (TLB) touched a 52-week low, moving in response to the pre-market announcement that TLB had an adjusted Q3 loss of $0.22 per share compared to income of $0.27 a year earlier and deeper than the Thomson Reuters mean analyst estimate for a loss of $0.16. Net sales decreased 6.6% to $279.5 million.

In commodities, crude oil futures fell on Thursday as some investors took profits after the previous session's rally and as traders were cautious ahead of the employment report on Friday. Crude for January delivery declined 16 cents, or 0.2%, to $100.20 a barrel on the New York Mercantile Exchange.

Other energy products tracked crude lower, but natural gas ended 2.8% higher after a weekly government report showed a decline in supplies when investors expected an increase.

Gold futures ended modestly lower, with a lower dollar providing some support for the falling prices. Gold for February delivery declined $10.50, or 0.6%, to end the day at $1,739.80 an ounce on the Comex division of the New York Mercantile Exchange.

UPSIDE MOVERS

(+) MOV raises outlook.

(+) YHOO said to be considering selling minority stake, buyout firms mulling bids for whole company.

(+) TEVA gains despite downgrade.

(+) LCC upgraded.

(+) TSPT exercises option to commercialize Intermezzo.

(+) KR beats with earnings, raises outlook.

(+) ARO continues evening dip that followed guidance miss.

DOWNSIDE MOVERS

(-) UBS shuffles risk execs.

(-) LULU misses with revenue.

(-) GIL misses with revs and guides for miss.

(-) KSS says same-store sales down 6.2%.

(-) PIR raises EPS view after sales results.

(-) STX upgraded.

(-) PG upgraded.

(-) LTD reports strong November sales, sets special dividend.

(-) M November same-store sales up 4.8%.