Shares on Wall Street edged lower on Thursday as investors continued to adjust for upcoming negotiations over the so-called fiscal cliff, overshadowing a batch of positive economic data.
Investors worry that if no deal is reached in Congress over the fiscal cliff — some $600 billion in spending cuts and tax increases set to kick in early next year — it could derail the American economic recovery.
Data showed that the United States trade deficit narrowed in September as exports increased, suggesting that the economy expanded more than previously estimated in the third quarter.
Also on Thursday, the government reported than fewer Americans than expected filed new claims for unemployment benefits last week. The jobs data was distorted by the effects from Hurricane Sandy, though it was not clear if the storm increased or decreased claims.
“We’ve seen a big spike in the trend of the jobs market in the past few months,” said Adam Sarhan, chief executive of Sarhan Capital in New York. “We should react positively to this.”
In afternoon trading, Standard & Poor’s 500-stock index was down 0.3 percent, as was the Dow Jones industrial average. The Nasdaq composite was 0.5 percent lower.
On Wednesday, equities slumped more than 2 percent, as investor focus returned to Europe’s economic troubles and the looming tax hikes and budget cuts in the United States.
McDonald’s shares dropped 1.4 percent after the company reported a 1.8 percent drop in October sales at established restaurants around the world, its first monthly sales fall since March 2003.
Qualcomm reported quarterly revenue late Wednesday that beat expectations, sending shares up more than 6 percent.
Whole Foods Market reported earnings that met expectations, but its shares were down 4.9 percent.
Shares on Wall St. Slide Lower
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Shares on Wall St. Slide Lower
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Shares on Wall St. Slide Lower
