US stocks hold with modest losses, bulls take a breather

Major US equity indices opened with modest losses on Thursday as bulls took a breather following the recent rally to a string of record highs.

Optimism over the economy and corporate earnings results have been fueling gains since the start of this year, lifting the blue-chip Dow Jones Industrial Average through the 26K milestone.

However, concerns over a possible government shutdown kept investors on the defensive and provided bulls with some excuse to catch their breath ahead of crucial next few days in the US politics.

On the economic data front, weekly jobless claims fell to a 45-year low but got negated by a larger than expected drop in Philly Fed Manufacturing Index. Meanwhile, housing starts decelerated more-than-expected in December and offset better-than-expected building permits data.

Against the backdrop of looming government shutdown this weekend, today's mixed economic data did little to impress the bulls and drive enthusiasm for equities. 

During the opening hour of trade, the Dow Jones Industrial Average was down over 25-points to 26,089, while the broader S&P 500 Index held near break-even level, around 2,801. Meanwhile, tech-heavy Nasdaq Composite slipped nearly 12-points to 7,286.