Stocks remain undecided in early afternoon trading on Thursday, as the day's mixed data has traders on the sidelines ahead of tomorrow's landmark monthly jobs report. The major averages remain mixed, turning in a lackluster session for the second day in a row.
The markets rose at the open after the Labor Department reported that first-time claims for unemployment benefits in the week ended November 28th unexpectedly showed a modest decrease compared to the previous week, falling to their lowest level in over a year.
Nonetheless, some downside came on the heels of a report from the Institute for Supply Management, which said that activity in the service sector unexpectedly contracted in the month of November. The contraction came following two consecutive months of growth.
The day's optimism has also been limited by November's comparable store sales data the nation's largest retailers, a majority of which missed estimates. Notably, Saks (SKS) and Abercrombie & Fitch (ANF) posted sales declines of 26 percent and 17 percent, respectively.
Traders are also looking to Capitol Hill, where Federal Reserve Chairman Ben Bernanke is testifying at his reconfirmation hearing before the Senate Banking Committee.
In other news, Bank of America (BAC) said it would repay the $45 billion owed to the Treasury Department that it originally received under the Troubled Asset Relief Program, or TARP. The stock has advanced 2.4 percent on the news.
The major averages have all seen choppy movement in recent dealing remaining little changed. While the Dow is currently down 4.61 at 10,448.07, the Nasdaq is up 7.00 at 2,192.03 and the S&P 500 is up 0.48 at 1,109.72.
Sector News
Gold stocks are some of the worst performers after the first half of the trading session, with the NYSE Arca Gold Bugs Index down by 2 percent. With the loss, the index is backing off of the roughly twenty-month closing high set on Wednesday.
The decline comes even as the price of the precious metal is showing a lack of direction in commodities trading on the NYMEX, holding at $1,213 per ounce.
Health insurance stocks are also considerably lower, dragging the Morgan Stanley Healthcare Payor Index down by 1.7 percent. Despite the pullback, the index remains rangebound.
Oil service, wireless and banking stocks are also moving lower, while healthcare provider stocks are holding onto the bulk of their earlier gains. The Morgan Stanley Healthcare Provider Index is currently up by 1.6 percent, moving further off of Monday's three month closing low.
Biotechnology and semiconductor stocks are also advancing, with the Philadelphia Semiconductor Index NYSE and the Arca Biotechnology Index up by 1.3 percent and 1.2 percent, respectively. The indices have risen to their best intraday levels in roughly six weeks.
Stocks In The News
Comcast (CMCSA) is on the rise in early afternoon trading after the firm entered into a definitive agreement with General Electric (GE) to acquire a majority stake in NBC Universal. Shares of the cable giant have risen by 6.2 percent, reaching a two-month intraday high.
SeaChange International (SEAC) is also advancing following news that the company's third quarter earnings of $0.11 per share beat the $0.06 per share expected by Wall Street analysts. The company also beat revenue estimates. The stock is currently up by 5.8 percent, moving further off of the eight-month closing low set last Friday.
On the other hand, Aeropostale (ARO) is retreating after forecasting fourth quarter earnings of $1.20 to $1.24 per share, with the lower end of the guidance failing to meet Wall Street estimates. The stock has plunged by 11.4 percent, dropping to a seven-month intraday low.
In Focus: Economic Data
As mentioned above, the Labor Department reported that first-time claims for unemployment benefits in the week ended November 28th edged down to 457,000 from the previous week's revised figure of 462,000.
The decrease surprised economists, who had expected jobless claims to increase to 480,000 from the 466,000 originally reported for the week ended November 21st.
Meanwhile, the ISM said that its headline index of activity in the service sector fell to 48.7 in November from 50.6 in October, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to increase to a reading of 51.5.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region saw notable strength on Thursday. Japan's benchmark Nikkei 225 Index advanced by 3.8 percent, while Hong Kong's Hang Seng Index rose by 1.2 percent.
Meanwhile, the major European markets ended the day mixed. The U.K.'s FTSE 100 Index and the German DAX Index fell by 0.3 percent and 0.2 percent, respectively, while the French CAC 40 Index inched up by 0.1 percent.
In the bond markets, treasuries have offset some of their losses but remain negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.360 percent, posting a gain of 3.7 basis points.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.