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New York - US stocks traded lower on Wednesday, despite better jobless claims numbers and a shrinking trade deficit off record levels, as investors fretted about European debt pressures and G20 tensions.
Amid jitters on currency and bond markets ahead of the opening of a Group of 20 summit in South Korea on Thursday, few traders appeared willing to leap on the positive news.
The blue-chip Dow Jones Industrial Average fell 71.49 points (0.63%) to 11 275.26 by 1515 GMT, led by a 3.3% drop in Boeing's shares after the aerospace giant's new 787 Dreamliner was forced to make an emergency landing during a test flight.
The S&P 500 index, a broader measure of the market, dropped 7.68 points (0.63%) to 1 205.75, while the tech-rich Nasdaq composite index shed 14.37 points (0.56%) at 2 548.59.
"Investors remain cautious," said Joseph Hargett at Schaeffer's Investment Research.
"Traders should continue to keep their eyes focused overseas today, as European debt concerns and a spike in China's trade surplus in September are driving sentiment outside of Wall Street."
On the home front, the Labor Department reported new claims for US unemployment aid dropped sharply last week to close to the lowest level of the year.
Initial jobless claims stood at 435 000 in the week ending November 6, a decrease of 24,000 from the previous week's revised figure of 459 000.
That was well below the 450 000 level expected by most economists and the lowest level since early July, when claims fell to 427 000.
"This is an encouraging report on the heels of the October employment report that could prompt more discouraged workers to begin looking for work again," said Patrick O'Hare of Briefing.com.
The Commerce Department reported the US trade deficit eased off record levels in September to $44bn, as the value of imports edged down and exports nudged up.
The US dollar continued its recent rise against key currencies, weighing on stock markets and especially the shares of the large exporting multinational companies.
Leaders of the G20 biggest advanced and emerging-market economies will begin two-day talks in Seoul on Thursday to address global economic imbalances linked to trade and currency tensions.
Among stocks in focus, Research in Motion, the maker of BlackBerry, saw its shares rise by more than two percent over news it will unveil a tablet computer early next year at a cost lower than 500 dollars.
The bond market was mixed.
The yield on the 10-year Treasury bond rose to 2.69% from 2.66% on Tuesday, while that of the 30-year bond decreased to 4.23% from 4.25%. Bond prices and yields move in opposite directions.
