Market Snapshot September 17, 2009, 4:45PM EST

Stocks End Modestly Lower

Investors Thursday weighed reports showing a jump in the Philadelphia Fed index, a decline in jobless claims, and a rise in housing starts

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U.S. stock indexes closed modestly lower Thursday, pulling the S&P 500 index down from 11-month highs. Trading was choppy as the market also absorbed buying and selling based on the expiration of options.

A fresh supply of economic data did little to inspire investors. Reports showed a larger-than-expected jump in the Philadelphia Fed index, a rise in housing starts that was in line with market forecasts, and a smaller-than-expected drop in initial jobless claims but a surge in continuing claims.

On Thursday, the 30-stock Dow Jones industrial average finished lower by 7.79 points, or 0.08%, at 9,783.92. The broad Standard & Poor's 500-stock index shed 3.27 points, or 0.31%, to 1,065.49. The tech-heavy Nasdaq composite index was down 6.40 points, or 0.30%, to 2,126.75.

On the New York Stock Exchange, 17 stocks were lower in price for every 13 that advanced. Nasdaq breadth was 14-13 negative.

Treasuries rose. The dollar index edged higher. Gold futures fell. Crude oil futures were mixed.

Investors appeared to be disappointed by news Thursday that FedEx (FDX) profits fell 53%, and the company failed to beat earnings estimates.

After the close of trading Wednesday, business software designer Oracle (ORCL) slipped after reporting slightly lower sales than forecast, though earnings were in line with expectations.

American Airlines parent company AMR (AMR) received a $2.9 billion credit line and leasing facility, boosting its shares over 24%.

In economic news Thursday, the U.S. Philadelphia Fed index surged to 14.1 in September after climbing almost 12 points to 4.2 in August. The index was at 3.8 a year ago. However, the employment component index slipped to -14.3 from -12.9 previously (-0.9 last September), highlighting ongoing weakness in the labor market. New orders slipped to 3.3 from 4.2 (5.6 a year ago) as the pace of expansion slowed. Shipments climbed to 8.2 from 0.6 (2.6 a year ago). Prices paid rose to 14.9 from 10.0 (31.5 last September). Prices received dropped to -10.6 from -1.5 (15.5 last year). The 6-month ahead general business activity index dipped to 47.8 from 56.8, though employment rose to 20.5 from 12.9.