Investing.com -- U.S. stocks used a late rally to close slightly higher on Thursday, as investors closely monitored developments on the oil and labor markets, ahead of a critical U.S. jobs report that could add further confusion to a bumpy start of the new year.
Investors were relatively cautious in the final session before the release of the January U.S. jobs report by the Department of Labor on Friday morning. While the pace of job gains is expected to decelerate from a robust report a month earlier, analysts still anticipate an increase of 188,000, considerably above a target set by Federal Reserve chair Janet Yellen in December. Still, sharp declines in wage growth last month could compel the Federal Open Market Committee (FOMC) to tighten its monetary policy more gradually than previously anticipated.
The Dow Jones Industrial Average inched up 79.92 or 0.49% to 16,416.58, while the NASDAQ Composite index gained 5.32 or 0.12% to 4,509.56, in spite of losses from several top pharmaceutical stocks. Earlier on Thursday morning, a panel of top executives testified at a U.S. House Oversight and Government Reform hearing on price-gouging in the drug industry. Within minutes, embattled Turing Pharmaceuticals CEO Martin Shkreli was excused from the hearing after invoking the Fifth Amendment to avoid questions from Rep. Trey Gowdy (R, South Carolina).
The S&P 500 Composite index, meanwhile, added 2.92 or 0.15% to 1,915.45, as five of 10 sectors closed in the green. Stocks in the Basic Materials and Industrials sectors led, each gaining more than 1.7% on the session. Stocks in the Consumer Goods, Utilities and Health Care industries lagged. Despite the minor gains, all three major indices are still down by more than 5% since the start of 2016.
Elsewhere, oil futures fell mildly paring some of their gains from Wednesday's massive surge when crude gained more than 8% on the trading day. U.S. crude futures closed on Thursday around $32 a barrel, remaining near 12-year lows from last month. In an unexpected move, ConocoPhillips (N:COP) slashed quarterly dividends by two-thirds, marking the first time the oil giant has lowered its divided in more than a quarter century.
The top performer on the Dow was Caterpillar Inc (N:CAT), which added 2.69 or 4.25% to 65.96. Caterpillar, the world's leading manufacturer of construction and mining equipment, is sensitive to fluctuations in global metal prices. On Thursday, gold surged to its highest level since late-October, as investors continued to pile into the safe-haven asset. The worst performer was Nike Inc (N:NKE), which fell 2.32 or 3.71% to 60.17. Shares in the athletics apparel giant are still up by more than 10% over the last year.
The biggest gainer on the NASDAQ was Fastenal Company (O:FAST), which added 3.90 or 9.84% to 43.53 after reports from the industrial and construction supplier showed that its flagging sales rebounded in January. The worst performer was MNST, which fell 6.46 or 4.79% to 128.46, amid heavy short covering. On Tuesday, the energy beverage company received an upgrade from several prominent firms, including Wells Fargo (N:WFC).
The top performer on the S&P 500 was Freeport-McMoran Copper & Gold Inc (N:FCX), which posted double-digit gains for the second consecutive day. Shares in the Arizona-based mining company soared 0.87 or 17.94% to 5.72. The worst performer was Ralph Lauren Corporation (N:RL), after Stefan Larsson, the apparel company's new CEO announced he was performing a review of its business model to explore new growth opportunities. It came after Ralph Lauren (N:RL) reported a 39% decline in its earnings for the three-month period that ended in December. Ralph Lauren shares plummeted 25.61 or 22.16% to 89.95.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,948-1,091 margin.