U.S. stocks close lower on investor caution

SAN FRANCISCO (MarketWatch) — U.S. stocks closed lower Thursday after paring earlier losses as investors treaded lightly awaiting a correction of the market’s recent rally. The Dow Jones Industrial Average (DJI JIA) fell 42.47 points, or 0.3%, to close at 13,944.05; the S&P 500 Index (SNC:SPX) declined 2.73 points, or 0.2%, to 1,509.39; and the Nasdaq Composite Index (NASDAQ:COMP) shed 3.34 points, or 0.1%, to close at 3,165.13. Stocks are up from 5% to 6% on the year, and are near multi-year highs. They started facing headwinds early Thursday after the European Central Bank’s optimism for economic recovery showed signs of fraying and data showed U.S. fourth-quarter productivity fell 2%