This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stocks Slip as Plosser Warns Fed's Reach is Limited

NEW YORK ( TheStreet) -- U.S. markets closed lower Thursday as Philadelphia Fed President Charles Plosser warned that the central bank may be limited in its ability to implement further quantitative easing.

The S&P 500 was down 0.37% to 1,626.67.

Stocks dropped Thursday despite encouraging labor market data and a report that Microsoft (MSFT - Get Report) may buy Nook Media LLC, the digital book venture of Barnes & Noble (BKS - Get Report).

Barnes & Noble soared 24% to $22.10 after TechCrunch, which is owned by AOL Inc. (AOL - Get Report), reported that Microsoft is offering to buy Nook for $1 billion. TechCrunch cited internal documents obtained by the technology news site. Microsoft dropped 1% to $32.66 while AOL, which was upgraded to "outperform" by Wells Fargo gained 3.4% to $39.04.

"We set new records every day and when you get near the 1,630 area there's going to be some natural resistance," said JJ Kinahan, Chicago-based chief derivatives strategist at TD Ameritrade. "It's tough for a lot of companies at this point in the earnings cycle; we rallied so much that everyone almost has a suspicious eye to everything. For them, earnings have to blow away expectations ... it's a bit of a psychological game at this point."

The Dow Jones Industrial Average dropped 0.15% to 15,082.62 while the Nasdaq was slipped 0.12% to 3,409.17.

The Labor Department reported Thursday that weekly initial jobless claims dropped by 4,000 to 323,000, staying near a five-year low, in the week ended May 4 from and upwardly-revised 327,000 the prior week. The four-week moving average on initial claims was 336,750, a decrease of 6,250 from the previous week's 343,000.

Continuing claims fell 27,000 to 3.005 million in the week ended April 27 from an upwardly-revised 3.032 million the preceding week. Economists, on average, were expecting continuing claims of 3.02 million and initial claims of 335,000.

Precision Castparts (PCP - Get Report) was a big gainer in the S&P, advancing 7.6% to $206.68 after the manufacturer of metal components and products booked fourth-quarter earnings of $2.82 a share that beat estimates by seven cents, driven by growth in commercial OEM aerospace demand, steady improvement in industrial gas turbine spares, and accelerating oil and gas downhole casing production, along with a full quarter of strong Timet performance, the company said.

The Census Bureau reported that wholesale inventories rose 0.4% in March versus the expected rise of 0.3% and decline of 0.3% in February.

June gold futures fell $5.10 to $1,468.60 an ounce and June light sweet crude oil futures lost 23 cents to $96.39 a barrel.

Written by Andrea Tse and Joe Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BKS $23.26 0.00%
AOL $39.44 0.00%
MSFT $40.97 0.00%
PCP $212.18 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs