US stocks retreated on Thursday, with investors hesitant to make big bets on equities before Friday's jobs report and as retailers reported mixed sales for August. But the three major US stock indexes posted gains for the month, with the Nasdaq up 4.4 percent, its best advance for August in six years.
Tame core consumer price inflation data from the Commerce Department failed to inspire investors, as did midday comments from Federal Reserve Chairman Ben Bernanke, who said that growth in US labour force productivity is likely to remain strong.
Same-store sales at teen-oriented retailers American Eagle Outfitters Inc and Abercrombie & Fitch Co beat Wall Street's expectations, while J.C. Penney Co Inc's and Jos. A. Bank Clothiers Inc sales disappointed investors. "There's nothing compelling here to really move the market either way. Economic numbers that came out today were bland and retail sales were kind of mixed," said Victor Pugliese, managing director and head of New York equity trading at First Albany Corp. "The holiday weekend has started."
The Dow Jones industrial average was down 1.76 points, or 0.02 percent, to end at 11,381.15. The Standard & Poor's 500 Index was down just 0.45 of a point, or 0.03 percent, at 1,303.82. The Nasdaq Composite Index was down 1.98 points, or 0.09 percent, at 2,183.75.
For the month, the Dow rose 1.8 percent and the S&P 500 gained 2.1 percent. The Nasdaq and the S&P 500 had their best monthly percentage gains since January, while the Dow had its best since April. Volume on Thursday was light ahead of the long Labour Day holiday weekend, with just 1.33 billion shares changing hands on the New York Stock Exchange, well below last year's daily average of 1.61 billion.
On Friday, investors will comb through the nonfarm payrolls report for August to glean clues about the outlook for interest rates ahead of the Fed's September 20 policy-setting meeting. Shares of upscale department store chain Nordstrom Inc shot higher after it said sales at stores open at least a year beat Wall Street expectations. Nordstrom's stock jumped 5.9 percent, or $2.07, to end at $37.35 on the NYSE. Strong back-to-school shopping lifted August sales, and the shares of teen retailers American Eagle, up 3.9 percent, or $1.43, at $38.61 on the Nasdaq, while Abercrombie added 1.8 percent, or $1.15, to $64.53 on the NYSE.
In contrast, shares of department store operator J.C. Penney edged down 0.2 percent, or 12 cents, to $63.04. Shares of men's apparel retailer Jos. A. Bank Clothiers sank 16 percent, or $4.56, to $23.93 on the Nasdaq after the company reported a decline in August same-store sales.
Shares of mining equipment maker Joy Global Inc jumped 21.5 percent, or $7.71, to $43.54 after it reported a profit that topped analysts' expectations and forecast revenue growth for the next 12 months. Shares of Exxon Mobil Corp were the biggest drag on the S&P 500 index, even as US crude oil for October delivery rose 23 cents to settle at $70.26 a barrel. Exxon Mobil shares fell 0.9 percent, or 63 cents, to $67.67 on the NYSE and also weighed on the Dow..
Volume on the Nasdaq was about 1.75 billion shares traded, below last year's daily average of 1.80 billion. Advancing stocks outnumbered declining ones by a ratio of about 3 to 2 on the NYSE and by 8 to 7 on Nasdaq.
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