US stocks were little changed on Thursday, stalling after the biggest three-day rally of the year as investors geared up for a jobs report that is likely to show Europe's crisis is weighing heavily on the US economy. The market was unimpressed by China, Europe and Britain all loosening monetary policy.
Stocks also derived little benefit from reports showing hopeful signs on US hiring since investors give more weight to the monthly payrolls report due on Friday. Financial stocks weighed on Wall Street, with Dow component J.P. Morgan Chase falling 3.7 percent to $34.58.
News that the US service sector slowed to a 2 1/2-year low in June was in line with investor fears that the euro zone debt crisis was sapping global growth. Traders booked gains from the strong run that began Friday and extended through Tuesday. US markets were shut on Wednesday for a holiday.
Economists do not expect the payrolls report for June to dispel concerns that the recovery is losing steam. Europe's debt debacle has sapped the strength of the global economy and some worry Thursday's central bank actions indicate they are fighting a losing battle.
"There are desperate moves being taken by central banks all around the world that are trying to put a finger in this giant dike of debt and they really don't know what to do or how to do it," said Tom Alexander, head of Alexander Trading in Savannah, Georgia. "You've got all sorts of uncertainty that is still lingering...."
The Dow Jones industrial average was up 7.53 points, or 0.06 percent, to 12,951.35. The S&P 500 Index dipped 0.87 point, or 0.06 percent, to 1,373.15. The Nasdaq Composite Index gained 10.60 points, or 0.36 percent, to 2,986.68. The S&P Financial index and the KBW Banks index fell about 1 percent. Financials have often taken the brunt of selling during the European crisis, though they also enjoyed a good run during the recent rally. Costco shares were down 0.37 percent at $94.07 and Target shares fell 0.6 percent to $57.43.