Stocks fell on Thursday as earnings from JPMorgan and soft economic data in China reinforced worries about a slowing global economy, giving investors reason to pause after the recent run-up.
JPMorgan Chase & Co
China's trade surplus, in a reflection of global economic weakness and domestic cooling, narrowed for a second straight month in September as both imports and exports were lower than expected.
(JPMorgan) is kind of a lead into earnings, a little bit better than expected, but it really wasn't a knock your socks off number either, so it's not going to sway the market too much, said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
You probably are seeing a little bit of profit taking, but nothing too dramatic.
The S&P 500 has run up 11.4 percent from its intraday low hit last week on Tuesday and had its largest seven-day rally since March 2009 on growing optimism European leaders were making progress in tackling the region's debt problems.
The Dow Jones industrial average <.DJI> was down 104.52 points, or 0.91 percent, at 11,414.33. The Standard & Poor's 500 Index <.SPX> was down 12.31 points, or 1.02 percent, at 1,194.94. The Nasdaq Composite Index <.IXIC> was down 10.93 points, or 0.42 percent, at 2,593.80.
On the U.S. economic data front, new claims for jobless benefits were little changed last week and the trade deficit narrowed marginally in August, indicating a modest improvement in the economy.
A report on Wednesday that Akamai Technologies Inc
(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)