Stocks turn mixedWall Street struggles after previous session's big decline, as investors mull reports on jobs and factory orders.NEW YORK (CNNMoney.com) -- Stocks turn mixed Thursday morning, struggling to hold on to morning gains, as investors mulled a jump in factory orders and a stronger reading on private sector employment ahead of Friday's bigger government employment report. The Dow Jones industrial average (INDU) and the broader S&P 500 (INX) index both gained modestly 90 minutes into the session, while the Nasdaq (COMPX) composite inched lower. Stocks tumbled Wednesday, the first trading day of 2008, as record oil and gold prices and a report showing contraction in the manufacturing sector raised worries about the threat of recession. Such worries remained in place Thursday, but were tempered a bit as investors focused on the day's economic news. ADP, a payroll services firm, reported that private sector employment grew by 40,000 in December, topping forecasts for 33,000. Friday brings the government's monthly labor market report, expected to show employers added 70,000 jobs to their payrolls after adding 94,000 jobs in November. Ahead of that, investors took in the government's weekly unemployment report, which showed a bigger-than-expected drop in the number of Americans filing claims for unemployment last week. Also released Thursday: the November factory orders report, which showed a rise of 1.5 percent in the month after a rise of 0.7 percent in the previous month. Economists thought it would rise 1 percent. U.S. light crude oil for February dipped a bit after a mixed weekly oil inventories report. On Wednesday, oil briefly topped $100 a barrel for the first time ever, before pulling back a bit to end at a record settle price of $99.62 a barrel. In the latest subprime fallout, State Street (STT, Fortune 500) said it will take a $279 million fourth-quarter charge to cover expected legal costs relating to poor performing fixed income funds, particularly those invested in debt backed by subprime mortgages. The company also said that the president and chief executive of State Street Global Advisors, its investment management unit, has resigned. Separately, credit ratings agency Fitch Ratings cut its outlook on the company to negative from stable. Despite all this, shares rose 7 percent, perhaps on relief that the news wasn't even worse. Sciele Pharma (SCRX) shares jumped 15.7 percent in unusually active Nasdaq trade after the company received regulatory approval to sell a new version of its high blood pressure drug Sular. Market breadth was mixed. On the New York Stock Exchange, winners topped losers eight to seven on volume of 340 million shares. On the Nasdaq, decliners topped advancers by a narrow margin on volume of 540 million shares. COMEX gold for February delivery rose $2.30 to $862.30 an ounce, building on an all-time high hit Wednesday. Treasury prices slipped, giving back some of the previous session's gains, raising the yield on the 10-year note to 3.95 percent from 3.90 percent late Wednesday. Treasury prices and yields move in opposite directions. In currency trading, the dollar slipped versus the yen and the euro. |
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