MARKET SNAPSHOT: U.S. Stocks Stuck In The Red After Data Points To Europe, China Weakness

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch European PMI data was weakest in 16 months

NEW YORK (MarketWatch) -- U.S. stocks struggled to advance on Thursday, as investors took stock of a hodgepodge of economic data.

Ahead of the opening bell, stock futures were under pressure after a batch of economic indicators from Europe and China showed weakness.

Among Tuesday's upbeat economic releases were a rise in existing home sales, a jump in the Philly Fed index and weekly jobless claims remaining below 300,000 for the 10th straight week.

Consumer prices were flat in October, while U.S. November Markit flash PMI was the weakest since January, declining for a third straight month.

"The market is consolidating at the higher end of this range, which is obviously at records, but basically it's pretty good considering the runup we've had," said Peter Cardillo, chief market economist at Rockwell Global Capital.

The S&P 500 (SPX) and the Dow Jones Industrial Average (DJI) hovered near record levels reached on Tuesday. The Nasdaq Composite (RIXF) inched higher.

Markit reported that the flash November reading for the composite purchasing managers index in the eurozone dropped to 51.4, its lowest level in 16 months. After the release, European stocks tumbled, as did the euro (EURUSD) versus the dollar.

The data confirms that the eurozone is still in rough shape. Germany's own November preliminary manufacturing survey came in at 50.0, versus an expected 51.5. Stock futures were also dealing with weakness in a similar gauge out of China, which showed factory activity declined in November, after gaining in the prior month. PMI data out of Japan was also weak.

Goldman's call for S&P 500 and data on tap: The investment bank said in its equity outlook for 2015 that the S&P 500 should rise to 2,100 by the end of that year, making for a "modest" 5% total return. It added that the market reaction to the first Federal Reserve rate hike in six years should be "benign."

But Goldman also said 2015 will be challenging for active equity managers, with low volatility continuing to be a theme. The S&P 500 will rise to 2,150 by mid-year, but then slip during the second half, it forecast.

(Also see: Consumer spending to benefit from gas that is cheaper than milk http://www.marketwatch.com/story/consumer-spending-to-benefit-from-gas-thats-cheaper-than-milk-2014-11-19.)

Stocks in focus: Best Buy Co.(BBY) shares jumped after earnings beat forecasts.

Dollar Tree Inc. shares surged beat third-quarter sales and profit expectations, posting its best sales figures since 2011.

See Stocks to Watch

Salesforce.com(CRM) fell after the cloud-computing company's weak outlook overshadowed its slight beat on the third quarter.

Caesars Entertainment Corp.(CZR) soared after Bloomberg News reported the casino operator plans to turn its largest unit into a real-estate investment trust.

In other markets: The dollar(USDJPY) rose against the Japanese yen, pushing past Yen118.24, but pulled back slightly. The Nikkei 225 index closed flat. Gold (GCZ4) pared some losses, while oil (CLZ4) ticked up slightly.

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