Business Blog Posts

The dollar reversed a long downtrend, slamming oil and gold markets, which in turn took a toll on energy and mining stocks. Newmont Mining Corp (NEM.N) and Freeport-McMoRan Copper & Gold (FCX.N) both fell more than 2 percent.

Investors said better-than-expected weekly jobless claims limited declines, but the spotlight was on Friday's larger non-farm payrolls report.

Friday's report is expected to show payrolls were unchanged in September, but the release has bigger implications for a market hoping that weak data will spur the Federal Reserve to take further steps to boost the economy.

"This one, unfortunately, gets into the realm of economic psychology," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

"I think the market would appreciate (a number) that's a little better, but that still allows the Fed to come in."

The euro's recent rally against the dollar stalled as investors booked profits. The dollar and equities have had an inverse relationship as investors take money out of stocks for the perceived safety of the greenback.

TAKING A SHINE TO ALCOA

Alcoa Inc (AA.N) kicked off the unofficial start to earnings season after the closing bell. The largest U.S. aluminum producer reported a lower third-quarter profit, but said global markets were strengthening. Its shares rose 3.2 percent to $12.59 in extended trade.

But some lackluster earnings reports weighed on the market during the regular session after PepsiCo Inc (PEP.N) trimmed the top end of its earnings forecast, while Marriott International Inc's (MAR.N) results failed to beat high expectations. Pepsi was down 3 percent at $66.10 and Marriott slid 5.8 percent to $35.67.

The Dow Jones industrial average .DJI dipped 19.07 points, or 0.17 percent, to 10,948.58. The Standard & Poor's 500 Index .SPX eased 1.91 points, or 0.16 percent, to 1,158.06. But the Nasdaq Composite Index .IXIC added 3.01 points, or 0.13 percent, to 2,383.67.

Last month, the Fed hinted at the possibility that it might pump more cash into the U.S. economy, probably through buying bonds, in an additional round of quantitative easing to bolster the anemic recovery after the worst recession since the 1930s.

Growing conviction of further fuel from the Fed in part helped the S&P 500 rally 8.8 percent in September.

While the overall payrolls number is not expected to change, economists polled by Reuters forecast that private-sector payrolls added 75,000 jobs in September. The unemployment rate is expected to tick up to 9.7 percent from 9.6 percent in August.

BETTING ON TEEN SPIRIT