US STOCKS-S&P 500, Dow pull back from all-time closing highs after grim jobless data

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(Updates to market close)
By Stephen Culp
NEW YORK, Nov 25 (Reuters) - The S&P 500 index .SPX closed
lower on Wednesday as mounting U.S. layoffs in the wake of new
mandated lockdowns to contain surging COVID-19 infections
dampened investor risk appetite.
The index and the Dow Jones Industrial Average .DJI
retreated from record closing highs, pulled lower by cyclicals
and small caps that drove the rally earlier in the week.
Pandemic-resilient tech and tech-adjacent market leaders
helped keep the Nasdaq afloat.
"It's a growth day, flipping back the other way away from
value," said Tim Ghriskey, chief investment strategist at
Inverness Counsel in New York. "It's this ongoing struggle
between the virus and the vaccine."
"There's a reality setting in that while the vaccine will
start being distributed fairly quickly, the virus isn't go away
quickly and therefore the timeline for economic improvement is
getting pushed out."
A wide range of data released in advance of Thursday's
Thanksgiving holiday was dominated by a second consecutive week
of unexpected jobless claims increases, suggesting that new
restrictions to combat spiking coronavirus cases could hobble
the struggling labor market's recovery. "The economic data is not good, and we know it won't be good
for some time given this new wave of the virus," Ghriskey added.
The market appeared to be replaying the previous two weeks,
which began with rallies driven by promising vaccine news but
pivoted back to stay-at-home plays on near-term pandemic
realities and lack of new fiscal stimulus.
Still, the vaccine developments and removal of uncertainties
surrounding the U.S. presidential election have driven Wall
Street indexes to record closing highs, and put the S&P 500 on
course for its best November ever.
Market participants believe U.S. stocks have more room to
climb. A recent Reuters poll showed analysts believe the S&P 500
will gain 9% between now and the end of 2021. The index has
surged about 66% since the coronavirus-led crash in March and is
up about 12% so far this year. Unofficially, the Dow Jones Industrial Average .DJI fell
173.5 points, or 0.58%, to 29,872.74, the S&P 500 .SPX lost
5.73 points, or 0.16%, to 3,629.68 and the Nasdaq Composite
.IXIC added 57.08 points, or 0.47%, to 12,094.40.
Of the 11 major sectors of the S&P 500, energy .SPNY
suffered the largest percentage loss.
The economically sensitive banking sector also ended the
session lower.
Tesla Inc TSLA.O , which surpassed $500 billion in market
capitalization on Tuesday, extended its gain even after the
electric-car maker recalled about 9,500 vehicles. The company also plans to start manufacturing electric
vehicle chargers in China starting next year, according to
documents it submitted to Shanghai authorities.