It looked as if US equities had turned the corner by midday after being weighed down all morning by Walmart and Cisco, but the laggards finally won the battle.
Cisco pressured not just the Dow industrials but the Nasdaq too, sending the Big Board 55 points lower to finish at 24713.98 and the Nasdaq down 16 points to 7382.47.
Meanwhile, small-cap stocks got a whole lot more expensive as the Russell 2000 rose 9 points to hit an all-time high of 1,625.29.
Nektar Therapeutics Inc (NASDAQ:NKTR) helped the S&P 500 to a two-point miss at 2720.13. The biopharma fell 7% on the day following the release of clinical trial results.
In after-hours action, Applied Materials Inc (NASDAQ:AMAT) beat estimates for both profit and sales in its second quarter, but shares of the chip-equipment supplier fell 2.7% on disappointing guidance.
And Nordstrom Inc. (NYSE:JWN) shares took a 7% dive after the high-end retailer beat first-quarter expectations but offered disappointing same-store sales results.
11:02 AM ET: US Stocks work their way back to positive amid economic reports
US stocks were off to a sluggish start Thursday, with Cisco Systems Inc. (NASDAQ:CSCO) and Walmart Inc (NYSE:WMT) weighing down the Dow industrials in morning action.
But the Big Board has begun to claw its way back into positive territory, along with the S&P 500 and Nasdaq. Meanwhile, the small-cap-centric Russell 2000 is solidly in the green.
In Toronto, stocks edged upward.
The Conference Board's Leading Economic Index this morning reported a 0.4% bump to 109.4 in April, a sixth straight gain that was in line with expectations.
US weekly jobless claims rose unexpectedly, according to the Labor Department. For the week ended May, new applications for benefits rose to 222,000. Economists were looking for 215,000.
And 10-year Treasury yields reached 3.1% as crude oil edged up to US$71.81 per barrel, sparking inflation fears.
7:25 AM ET: European markets lackluster as traders continue to fret about geopolitical tensions; Wall Street seen lower
European equities are in lackluster mood Thursday ahead of the New York bell as traders seem unwilling to push the boat out amid geopolitical tensions.
Relations between North Korea and the US have deteriorated a little in recent days, which has prompted some investors to sell holdings.
London-listed Ocado Group plc (LON:OCDO) shares went ballistic in morning trade as it unveiled a tie-up with US-based Kroger, continuing its international expansion aims.
On Wall Street, stocks closed the midweek session in positive territory, not least boosted by strong retail earnings.
The Dow Jones Industrial Average added over 62 points to close at 24,768, while the S&P 500 index gained around 11 points at 2,722. The Nasdaq exchange in New York added over 46 at 7,398.
But US futures point to a lower start, with the Dow Jones Industrial trailing over 21 points; the Nasdaq futures down 25 and the S&P 500 off 4.75.
In Toronto, the TSX closed up around ten points at 16,108, while the venture exchange added 0.47 at 781.50.
In London, FTSE 100 is up over eight points at 7,742, while the DAX is up over 27 at 13,023 and the CAC 40 is up around 19 at 5,586.
"Arguably, the FTSE does have a cause to be a bit more positive. Brent Crude has spent the morning dancing around $80 per barrel – a fresh 3 and a half year peak – shooting 1% higher on the news that Total is threatening to pull out of its Iran gas field deal," said analyst Connor Campbell at Spreadex.com.
"The Dow hasn’t had much luck in clawing back Tuesday’s trade war-fearing losses, with little on the horizon in the rest of the week – beyond an unforeseen update on the state of play between the US and China – to spark a recovery," he added.
In Asia overnight, stock markets were generally lower, though the Nikkei 225 added over 121 points at 22,838, but the Shanghai Composite Index in China shed around 15 and the Hang Seng in Hong Kong plunged 168 points to 30,942.