Overnight Markets: US stocks decline despite fall in new jobless claims

Wall Street fell on Thursday battered by weak commodities and firmer dollar even as initial jobless claims unexpectedly declined to their lowest level in three months and September retail sales beat expectations.

The Dow Jones industrial average dipped 19 points, or 0.17%, to 10,948. The Standard & Poor's 500 Index eased two points, or 0.16%, to 1,158. But the Nasdaq Composite Index added three points, or 0.13%, to 2,384.

Energy and mining stocks suffered after the dollar reversed a long downtrend, slamming oil and gold markets. Newmont Mining Corp and Freeport-McMoRan Copper & Gold both declined more than 2%.

The decline was cushioned after the release of better-than-expected weekly jobless claims, but the spotlight was on Friday's larger non-farm payrolls report. Initial jobless claims last week fell 11,000 to a seasonally adjusted 445,000, compared with predictions that they would edge up.

Retailers’ report that same-store sales in September rose 2.8%, compared with an average estimate for a 2.1% gain, also helped limit the decline in stocks. Abercrombie & Fitch surged 8.9% after reporting a 13% increase in sales, shoe and accessory retailer Buckle climbed 10.7% and sports clothing retailer Zumiez gained 8.2%. 

In other corporate news, Pepsi declined 3% after it reduced its earnings forecast for the full year from a rise of between 11% and 13%, to a gain of between 11% and 12%. Marriott International shares also lost 5.8% after it issued a forecast below some analysts’ expectations.

However, Adobe surged 11.5% after a report sparked speculation about its possible merger with Microsoft.

In current trading, Asian stocks fell on Friday as a plunge in commodity prices pressured material companies lower and concern increased about the outlook for earnings.

The MSCI Asia Pacific Index fell 0.4% to 130 as of 11:10 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average lost 0.4%. South Korea’s Kospi index slipped 0.5% and Australia’s S&P/ASX 200 Index fell 0.4%. Hong Kong’s Hang Seng Index was little changed. China’s Shanghai Composite Index jumped 2.1% after a week-long holiday.

In corporate news, BHP Billiton Ltd. lost 0.3% in Sydney after crude and metals prices declined. Samsung Electronics Co. fell for a second day after profit missed analysts’ estimates.