Small losses for US stocks ahead of jobs data

The U.S. stock market finished with small losses on Thursday, 04 December 2014 having faded after jumping to intraday records in the early afternoon. The market showed typical caution ahead of Friday's monthly jobs report. Thursday served as a perfect reminder for how dependent global equity markets have become on central bank stimulus. Meanwhile, the second reminder manifested itself through volatility in European and U.S. markets in reaction to the European Central Bank's latest policy statement and subsequent press reports.

The Dow Jones Industrial Average fell by 12.52 points, or 0.1%, to 17,900.10. The blue-chip index had leaped an intraday record just below 17,938 in the early afternoon. The Nasdaq Composite lost 5.04 points, or 0.1%, to close at 4,769.44. The S&P 500 closed down 2.41 points, or 0.1%, to 2,071.92, after briefly rising to an intraday record above 2,077.

Energy fared worst among the S&P 500's 10 sectors, losing 0.8% as oil prices once again dropped.

The S&P 500 and Dow industrials climbed to intraday records after a Bloomberg report raised fresh hopes about European Central Bank stimulus plans, but those gains didn't stick as the closely watched employment report loomed.

There was dovish comments from European Central Bank president Mario Draghi, during his monthly press conference following the ECB monthly meeting. The Euro currency rallied and the U.S. dollar index sold off on Draghi's remarks, which was bullish for the gold market. However, gold prices quickly backed down to trade modestly lower, and where they were before the Draghi press conference began. The European Central Bank held interest rates steady at its monthly meeting on Thursday, as most expected. Draghi indicated Thursday the ECB will make its move in the first quarter of 2015.

The Bank of England Thursday kept its monetary policy steady, as expected, at its regular monthly meeting. The BOE mentioned the very low inflationary environment in Europe as reason for not raising rates.

Traders and investors are awaiting what is arguably the most important U.S. economic data point of the month: Friday's employment situation report from the U.S. Labor Department. The key non-farm payrolls figure is expected to rise by around 230,000 in November. Any non-farms number that is significantly out of line with expectations will likely at least temporarily rattle the markets.

Bullion prices ended the U.S. day session steady to slightly lower on Thursday, 04 December 2014 as traders hedged their bets ahead of a jobs report that could dull the precious metal's shine as a safe haven.

Gold for February delivery was down $4.80, or 0.4%, to $1,202.90 an ounce in electronic trade. March silver lost 18 cents, or 1.1%, to $16.39 an ounce.

Crude-oil futures declined on Thursday, 04 December 2014 Nymex aand abandoned an attempt to build on a prior-session rebound, driven by support from a recent drop in U.S. oil stockpiles. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January declined 57 cents, or 0.9%, to settle at $66.81 a barrel. Futures have been down six of the past eight sessions.

As per yesterday's report, U.S. crude inventories for the week ended 28 November 2014 fell by a surprise 3.7 million barrels, while analysts had expected an increase in supplies. That gave crude prices a bump on Wednesday.

Treasuries ended on their highs with the 10-yr yield sliding four basis points to 2.24%.

Participation was a bit below average with just over 780 million shares changing hands at the NYSE floor.

Tomorrow, the November Nonfarm Payrolls report (consensus 230K) will be released at 8:30 ET alongside the October Trade Balance (consensus -$42.00 billion). The Factory Orders report for October (consensus 0.2%) will cross at 10:00 ET and the day's data will be topped off with the 15:00 ET release of the Consumer Credit report for October (consensus $16.50 billion).

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