By Noel Randewich
(Reuters) – The ended lower on Thursday after weekly jobless claims fell to a near 18-month low, allaying fears of a slowing economic recovery, but also stoking worries the Fed could move sooner than expected to scale back its accommodative policies.
The Labor Department said initial claims for state unemployment benefits dropped 35,000 to a seasonally adjusted 310,000 for the week ended Sept. 4, the lowest level since mid-March 2020. That suggested that job growth could be hindered by labor shortages rather than cooling demand for workers. (Full Story)
Microsoft (NASDAQ:) MSFT.O, Apple (NASDAQ:) AAPL.O and Amazon (NASDAQ:) AMZN.O each declined, all three among the stocks weighing most on the S&P 500 and Nasdaq.
The S&P 500 real estate .SPLRCR and healthcare .SPXHC indexes were among the poorest performers of 11 sectors, while financials .SPSY and materials .SPLRCM made modest gains.
JPMorgan (NYSE:) JPM.N, Wells Fargo (NYSE:) WFC.N, Citi Group C.N and Morgan Stanley (NYSE:) MS.N each rose, tracking a slight rise in benchmark bond yields following the claims data. US/
“The problem with the market these days is it’s rotating more than it’s moving. Today, because of the jobs claims report, everyone is buying cyclical stocks,” said Jay Hatfield, chief executive of Infrastructure Capital Management in New York. “We see it as a rangebound market, between 4,400 and 4,600 (on the S&P 500).”
Investors have become more worried in recent sessions after a recent monthly jobs report showed a slowdown in U.S. hiring, suggesting the economic recovery may be losing steam faster than expected. Also dragging on sentiment has been uncertainty about when the U.S. Federal Reserve’s will scale back massive measures enacted last year to shield the economy from the coronavirus pandemic.
Unofficially, the .DJI fell 147.25 points, or 0.42%, to 34,883.82, the S&P 500 .SPX lost 20.44 points, or 0.45%, to 4,493.63 and the .IXIC dropped 38.17 points, or 0.25%, to 15,248.46.
Lululemon Athletica (NASDAQ:) LULU.O soared after providing a strong annual forecast, as demand for its yoga pants remains strong despite the easing of coronavirus restrictions.
Reports that Beijing slowed down approval for all new online video games sent shares of U.S.-listed gaming stocks Activision Blizzard Inc (NASDAQ:) ATVI.O, Electronic Art Inc EA.O, and Take-Two (NASDAQ:) Interactive Software Inc TTWO.O down more than 1%. (Full Story)
Digital Realty (NYSE:) DLR.N slid after the data center REIT announced a public offering of 6.25 million shares.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.