US blue chip stocks fell for a fifth day on Thursday in their longest losing streak in more than a year, after Wal-Mart Stores Inc's disappointing sales forecast and economic data raised concerns about inflation and slow growth.
Wal-Mart, the world's largest retailer, forecast flat November sales at US stores open at least a year. Its shares fell 1.2 percent, or 56 cents, to $48.29 on the New York Stock Exchange and were among the top drags on both the blue chip Dow and the broad Standard & Poor's 500.
Government data showing that labour costs grew more than expected in the third quarter while business productivity was unchanged raised worries about inflation and higher interest rates, which could hurt the outlook for corporate profits.
A brokerage upgrade of computer maker Dell Inc helped limit the Nasdaq's decline. "A weak forecast by Wal-Mart, a multi-month high in the weekly jobless claims number along with rising unit labour costs have all helped contribute to a weaker trading session," said Michael Sheldon, chief market strategist at New York brokerage Spencer Clarke in New York.
The Dow Jones industrial average slipped 12.48 points, or 0.10 percent, to end at 12,018.54, in its longest losing streak since June 2005. The Standard & Poor's 500 Index was down just 0.47 of a point, or 0.03 percent, to finish at 1,367.34. The Nasdaq Composite Index dipped a mere 0.33 of a point, or 0.01 percent, to close at 2,334.02.
Target Corp reported weaker-than-expected same-store sales in October. The drop in Target sales suggested that Wal-Mart's problems may be broader than first thought. Target shares fell 1.3 percent, or 74 cents, to $56.96 on the NYSE.
Among the Dow's biggest decliners were other blue chip names whose fortunes are linked to economic cycles, such as Boeing Co, the big US jet manufacturer, and conglomerate Honeywell International Inc. Boeing, the biggest drag on the Dow, slid 1.1 percent, or 86 cents, to $79.20 and Honeywell dropped 0.8 percent, or 33 cents, to $41.87.
But some investors snapped up stocks of companies that benefit from a slowing economy, including Johnson & Johnson, which rose 1.1 percent, or 72 cents, to $67.90. J&J contributed the most to curbing the Dow's decline.
Dell shares rose 3.3 percent, or 78 cents, to $24.80 and ranked among the biggest advancers in the Nasdaq 100. Analysts at Goldman Sachs & Co raised the rating on the personal computer maker's stock to "neutral" from "sell." Meanwhile, Intel Corp fell 1.6 percent, or 34 cents, to $20.68 on Nasdaq after Merrill Lynch lowered its rating on the stock to "neutral" from "buy".
Trading volume was heavy on the NYSE, where about 1.68 billion shares changed hands, above last year's daily average of 1.61 billion. On the Nasdaq, about 1.96 billion shares traded, above last year's daily average of 1.80 billion. Decliners outpaced advancers on the Big Board by a ratio of about 5 to 4. On the Nasdaq, seven stocks fell for every five that rose.
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