Breaking Wall Street Market News & Reports

The Dow slipped lower, after rising initially, after the government reported a slight drop in jobless claims and news of a stronger-than-expected showing in retail sales for August. 

The Labor Department reported weekly jobless claims fell by 6,000 to 472,000 for the week ended Aug. 28, better than the 475,000 forecast by economists polled by Reuters. Last week’s claims were revised up to 478,000 in Thursday’s report.  The government reported nonfarm productivity fell 1.8 percent, more than previously estimated in the second quarter and the largest drop since the third quarter of 2006. Consensus forecasts called for productivity to have dropped to a 1.9 percent annual rate and unit labor costs to have risen by 1.1 percent.

September started on a positive note driven by positive news on manufacturing in the U.S. and China, but investors now have their eyes on Friday’s monthly jobs report for insight on the health of the U.S. economy.

In other news; retailers are turning in surprisingly strong monthly sales reports in August, as sales-tax-free holidays and discounting coaxed shoppers to open their wallets and stock up on back-to-school items.  Overall, the Thomson Reuters Same-Store Sales Index is expected to rise 2.5 percent in August, the research firm said. The majority of the retailers reporting monthly sales results have topped analysts’ estimates, according to Thomson Reuters.  Consumers remain cautious about spending as unemployment remains high and questions about the economy persist. The real test for retailers will come in September. That is when investors will see if consumers are truly picking up their spending or if back-to-school sales merely shifted to August from September.

At 10 a.m., the National Association of Realtors will be out with its pending home sales report for July. Economists think home sales that have gone to contract but not yet closed fell 1 percent in July following a 2.6 percent gain in June. Also out at that time is the government’s July factory orders report, seen as rising by 0.2 percent after a 1.2 percent drop in June.