NEW YORK, Nov. 12 (Xinhua) -- The Dow Jones Industrial Average on Thursday snapped a six-day streak of gains with a nearly 1-percent decline to return to the red, the second dip this month after peaking a 13-month high on Wednesday.
However, rising 5.3 percent during that six-day period was the strongest rally for the Dow since the beginning of the summer run-up in July.
The decline came as the U.S. dollar gained momentum against a basket of six other major currencies.
Commodities stocks, however, were among the worst performers, as commodities are traded in dollars, so a strengthened dollar pushes the price of commodities lower. Weakness in the commodities market further pressures shares of energy and materials producers.
The dollar calls the tune for stocks in recent weeks, as the relationship between moves in the dollar and stocks has been incredibly tight. As the dollar rises, stocks fall and vice versa.
Thursday's retreat also took place as Wal-Mart Stores Inc. broke disappointing news on consumer spending.
Although the nation's biggest retailer reported third-quarter earnings that beat analysts' expectations, it said sales dropped at stores opened at least a year -- a key indicator of a retailer's strength.
Wal-Mart also said key sales gauge would range from a drop of 1percent to a gain of 1 percent in its fourth quarter, a disappointing range for investors.
The downbeat forecast heightened concerns for how the retail sector would fare this coming holiday season, as high unemployment and a weak housing market have sent shoppers hunting for bargains.
As consumer spending accounts for two-thirds of the U.S. economy, a slow and long recovery of consumer spending results in sluggish economic growth.
In addition, investors were also struggling with other concerns.
The S&P 500, which also closed at a 13-month high Wednesday, failed to remain above the 1,100 level for a second straight day. The index has rallied 61 percent from a 12-year low in March, recovering almost half of its plunge from a record low in October 2007.
Although some investors believe the greenback's continuing slide will keep interest rates low, and thus look past some of the economy's trouble spots, including rising unemployment, other analysts warned that the rally was unwarranted given the still-uncertain economic recovery.
The U.S. government reported on Nov. 6 that the unemployment rate spiked to 10.2 percent in October, up from 9.8 percent in September. It is the highest jobless rate since April 1983, though economists had forecast an increase to 9.9 percent for the past month.
There was a net loss of 190,000 jobs in October, according to the Labor Department, which was the 22nd straight month of job losses. Alan Valdes, a trader on the New York Stock Exchange, said: "More than a slowing pace of job losses, we need to see job growth."
Moreover, profits slumped for a record ninth straight quarter, though 81 percent of S&P 500 companies that released results have exceeded the average analysts' estimate for third quarter earnings per share, which is a record in Bloomberg data going back to 1993.
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