US STOCKS-S&P 500, Dow slip as labor market restoration falters
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* Weekly jobless claims unexpectedly rise
* U.S. COVID-19 dying toll crosses 250,000
* Macy’s drops after posting decrease comparable gross sales
* Indexes: Dow down 0.41%, S&P off 0.13%, Nasdaq up 0.55% (Updates to early afternoon)
Nov 19 (Reuters) – The S&P 500 and the Dow edged decrease on Thursday as new coronavirus restrictions and an sudden rise in weekly jobless claims raised fears of stalling financial progress within the absence of recent stimulus measures.
The report from the Labor Division, essentially the most well timed knowledge on the economic system’s well being, additionally confirmed at the very least 20.three million folks on unemployment advantages on the finish of October, seven months after the pandemic hit the US.
“What was a decline in jobless claims numbers for the last couple of months has suddenly reversed course, so that only plays into the current theme of the economy getting worse,” mentioned Kenny Polcari, managing companion at Kace Capital Advisors in Florida.
The S&P 500 index was set for its third straight session of losses, retreating farther from its file closing excessive hit on Monday following optimistic knowledge on a coronavirus vaccine.
Buyers have additionally turn out to be cautious of the financial injury inflicted by tightening enterprise restrictions as COVID-19 circumstances proceed to climb.
New York Metropolis’s public college system, the nation’s largest, stopped in-classroom instruction from Thursday, because the U.S. dying toll from COVID-19 handed a grim milestone of 250,000.
“Stimulus will be the key,” mentioned Joe Saluzzi, co-manager of buying and selling at Themis Buying and selling in New Jersey.
“Even a smaller package, half a trillion, will be well received and that’s the right trick to keep certain businesses open and keep people paying their rent before the vaccine starts coming in.”
Market contributors at the moment are trying to the Federal Reserve for indicators it might step in with recent financial stimulus.
At 12:05 p.m. ET, the Dow Jones Industrial Common was down 0.41% and the S&P 500 was down 0.13%.
Worth stocks, which embody banks and industrials, slipped 0.6%, whereas growth-linked stocks, that are perceived to be much less dangerous, logged small features.
The Dow Jones transportation and industrials indexes shed 0.9% and 0.2%, respectively, after every hit an all-time excessive on Wednesday.
L Manufacturers Inc surged 14.5% after posting better-than-expected quarterly outcomes, helped by file gross sales progress at Bathtub & Physique Works and better demand for Victoria’s Secret lingerie.
Nvidia Corp slipped 1.2% after firm executives mentioned knowledge heart chip gross sales would fall barely within the fourth quarter.
Declining points outnumbered advancers 1.25-to-1 on the NYSE; on the Nasdaq, advancers matched decliners.
The S&P index recorded two new 52-week highs and no new low, whereas the Nasdaq recorded 64 new highs and 6 new lows. (Reporting by Sruthi Shankar and Shivani Kumaresan in Bengaluru; Modifying by Sagarika Jaisinghani and Shounak Dasgupta)
Market information on CNN.