The S&P 500 index and the Dow edged lower on Thursday as investors fretted about weak economic data and disappointing earnings from Ford. The carmaker reported weak China sales and declared that the US auto industry's long recovery was at an end, triggering a 9.6 percent fall in its shares. The stock was the biggest drag on the S&P 500 index.
Ford's dismal forecast rattled the automobile market, with shares of General Motors falling 4 percent and Fiat Chrysler 6 percent. A report by the US Labour Department showed that the number of people claiming unemployment benefits rose more than expected to 266,000 for the week ended July 22. Energy shares took a hit after oil prices fell 2 percent. Exxon and Chevron dropped more than 1 percent.
"When you've got a one-way market, which we've had for several weeks, it is bound to consolidate or rest a bit," said David Donabedian, chief investment officer of Atlantic Trust Private Wealth Management. At 12:38 pm ET (1638 GMT), the Dow Jones Industrial Average was down 74.71 points, or 0.4 percent, at 18,397.46. The S&P 500 index was down 4.28 points, or 0.2 percent, at 2,162.3. The Nasdaq Composite index was down 2.58 points, or 0.05 percent, at 5,137.23.