NEW YORK — The U.S. stock market ended Thursday’s trading slightly lower as investors were hesitant to make any large bets before Friday’s release of the government’s closely watched jobs report.
The Dow Jones industrial average lost 4.15 points, or 0.02 percent, to 17,863.43; the Standard & Poor’s 500 index fell 2.38 points, or 0.1 percent, to 2,099.93; and the Nasdaq composite fell 14.74 points, or 0.3 percent, to 5,127.74.
Drug stocks were among the biggest decliners, after another steep drop in shares of Valeant Pharmaceuticals. Shares in the company, which traded above $250 a share only a few months ago, fell below $80 on reports that a major hedge fund had sold its investment in the company and a congressional panel is probing the company’s operations. Valeant closed down $13.20, or 14 percent, to $78.77.
While the government’s monthly jobs report is always important to investors, there is additional focus on this month’s report. With the fate of years of near-zero interest rates hanging in the balance, strong October and November jobs reports could give the Federal Reserve enough of a reason to consider raising interest rates in December.
“We think the Fed does raise interest rates in December, but it is going to be somewhat of a close call, and it depends on how the data comes in between now and then,” said David Lefkowitz, senior equity strategist for UBS wealth management.
Testifying before a committee of the U.S. Congress on Wednesday, Federal Reserve Chair Janet Yellen described the U.S. economy as “performing well” and said an interest rate hike in December was a “live possibility” if the economy stays on track. Her view was echoed by another Fed policymaker later in the day. Yellen stressed that no decision has been made yet and a move in December will depend on how the economy fares between now and then.
In the energy markets, U.S. crude oil fell $1.12, or 2.4 percent, to $45.20 a barrel in electronic trading in New York. Brent crude, which is used to price international oils, fell 60 cents, or 1.2 percent, to $47.98 a barrel.
Wholesale gasoline futures fell 2 cents, or 1 percent, to $1.487 a gallon; heating oil fell 3 cents, or 2 percent, to $1.361 a gallon; and natural gas futures rose 10 cents, or 4.5 percent, to $2.364 per 1,000 cubic feet.
The jump in natural gas prices helped push gas companies sharply higher. Southwestern Energy rose 62 cents, or 5.3 percent, to $12.28, and CONSOL Energy rose 33 cents, or 4 percent to $8.45.
