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US stocks dip as ECB stops short on stimulus

New York - US stocks followed European equity markets lower Thursday, falling slightly after the European Central Bank enacted no new stimulus measures.

The Dow Jones Industrial Average declined 12.52 points (0.07%) to 17 900.10.

The broad-based S&P 500 dipped 2.41 (0.12%) to 2 071.92, while the tech-rich Nasdaq Composite Index declined 5.04 (0.11%) to 4 769.44.

Markets in Britain, France and Germany all fell sharply after the ECB held its benchmark interest rate steady at 0.05%.

ECB chief Mario Draghi said the bank has stepped up preparations for more anti-deflation measures, but that they will be reassessed only in January.

"Obviously the market needs continued support," said Steven Rosen, a managing director at Societe Generale. "Investors were looking for Europe to come with a grand plan. Every time they push it off."

Investors are gearing up for Friday's release of the November US jobs report.

Petroleum-related stocks had another bad day as oil prices retreated again. Dow component Chevron fell 1.3%, Marathon Oil lost 2.3% and rig company Transocean tumbled 4.6%.

Airlines rallied on expectations for higher profits due to lower fuel costs. Delta Air Lines gained 3.7%, while United Continental advanced 4.2%.

Pipeline operator Enbridge jumped 10.3% after announcing a 33% increase in its quarterly dividend.

Barnes & Noble fell 5.4% after announcing that it ended a partnership with Microsoft for its Nook tablet. B&N will buy back Microsoft's stake in the partnership for $300m. Dow member Microsoft rose 1.6%.

Starbucks gained 1.0% as it unveiled a five-year plan to increase revenues to near $30bn in 2019 from $16bn in 2014. The company's plans include doubling its store count in China and boosting its food menu in the US.

Grocery chain Kroger added 3.6% as third-quarter net income jumped 21% to $362m behind higher revenues.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.26% from 2.29% on Wednesday, while the 30-year dropped to 2.96% from 2.99%.

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