Markets mostly closed lower on Thursday, ending a mixed trading session that followed initial jobless claims, a record low.
The S&P 500 posted a -0.72% loss in afternoon trading, erasing gains from a recent rally that brought it closer to a record high. The Nasdaq Composite also lost steam, falling 1.72%, or 269.62 points, to 15,517.37 as tech stocks took a hit, while the Dow was flat after this week’s bumpy trading.
Thursday’s stock movements followed the release of new data from the US Department of Labor that showed the number of Americans filing initial jobless claims fell to the lowest level since September 1969. Weekly jobless claims fell to 184,000, below the pre-pandemic average of about 220,000 per week, pointing to a tighter job market as employers seek to retain workers.
Investors mostly ignored the employment data as they turned their attention to this month’s Consumer Price Index report as concerns mount about stiffer levels of inflation. The latest CPI figures are due to be released on Friday morning.
“I think what we’ve learned from the jobless claims is that it’s another statement that the job market is getting tighter,” Principal Global Investors chief strategist Seema Shah told Yahoo Finance Live. “We can clearly see that there is a very strong demand for employment. The area that is holding back full recovery is from the supply side. “
“It seems that employers need to do more,” Shah added. “Wage increases are probably on the agenda for next year, and that is part of the broadening of inflationary pressures that we have already begun to see reflected in the CPI data.”
However, Shah told Yahoo Finance that his company expects other parts of the inflation outlook to fade and that the 6% to 7% consumer price figures likely to be seen in tomorrow’s report release should return. to fall to 3% -4% by the end of next year.
“If COVID gradually improves rather than a major resurgence in 2022, we expect to see a continued recovery in the US economy, a continued recovery in service spending,”
The U.S. Food and Drug Administration granted Pfizer Inc emergency use authorization and BioNTech’s COVID-19 booster vaccine for 16 and 17 year olds as the CDC strengthens its recommendations for those who are eligible to receive a third dose.
Shares of Pfizer (PFE) rose 0.67% on Thursday, trading at $ 52.07 a share.
Electric vehicle companies tumbled on Thursday, led by a sell-off of Lucid Group (LCID) shares.
The company erased $ 11 billion in market value following a proposal to offer $ 1.75 billion in senior convertible notes that are expected to be sold to institutional buyers in a private offering. The drop also marked the second plummet this week for Lucid shares, which haunted bear market territory on Monday following the release of an SEC investigation into a recent SPAC merger.
Other EV companies extended their losses after a three-day rally coupled with a broader market slide. Rivian (RIVN) fell 7.26% to $ 114.89 per share, Tesla (TSLA) fell 4.94% to $ 1,016.12 and Workhorse Group (WKHS) fell 5.9% to $ 5.18 . Nikola (NKLA) fell 0.44% to $ 9.92, Lordstown (RIDE) fell 5.93% to $ 4.20 and Canoo (GOEV) fell 7.18% to $ 9.44 in trading intraday.
4:01 pm ET: Stocks end lower after three days of gains
These were the main movements in the markets at 4:01 pm ET:
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S&P 500 (^ GSPC): -33.68 (-0.72%) to 4,667.53
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Dow (^ DJI): +0.53 (+ 0.00%) to 35,755.28
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Nasdaq (^ IXIC): -269.62 (-1.71%) to 15,517.37
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Crude (CL = F): – $ 1.75 (-2.42%) to $ 70.61 a barrel
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Gold (GC = F): – $ 8.90 (-0.50%) to $ 1,776.60 an ounce
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10-year treasury (^ TNX): -2.2 bps for 1.4870% performance
2:30 p.m. ET: Lucid falls 14%, erasing $ 11 billion in massive sales
Shares of electric vehicle maker Lucid Group (LCID) erased $ 11 billion in market value following a proposal by the company to offer $ 1.75 billion in senior convertible notes that are expected to be sold to institutional buyers in a private offer.
The drop marks the second nosedive this week for Lucid shares, which haunted bear market territory on Monday following the release of an SEC investigation into a recent SPAC merger.
Other EV companies extended their losses after a three-day rally coupled with a broader market slide. Rivian (RIVN) fell 7.26% to $ 114.89 per share, Tesla (TSLA) fell 4.94% to $ 1,016.12 and Workhorse Group (WKHS) fell 5.9% to $ 5.18 . Nikola (NKLA) fell 0.44% to $ 9.92, Lordstown (RIDE) fell 5.93% to $ 4.20 and Canoo (GOEV) fell 7.18% to $ 9.44 in trading intraday.
2:09 pm Nasdaq extends drop to 1.1%
The technology-focused Nasdaq composite extended its decline on Thursday, falling as much as 1.1% in afternoon trading to 15,611.08 after a volatile week for US stocks as they rose on a three-day recovery rally.
Markets were mostly lower in the second half of the day, with the S&P 500 also falling 13.08 points to 4,688.47. The Dow Jones gained 87.34 points, turning positive earlier in the day after a drop in the morning hours.
1:49 pm Brazil’s Nubank debuts on Wall Street
Shares in Nu Holdings (NU), the Warren Buffet-backed Brazilian fintech that does business as NuBank, rose as much as 36% on its opening trading day Thursday.
Nubank’s initial public offering in the United States makes it the most valuable financial institution in Latin America, surpassing Itaú Unibanco Holding SA, with a market value of $ 38 billion. The company’s IPO follows a record wave of Brazilian listings, adding to nearly 50 companies that raised more than 65 billion reais ($ 12 billion) this year.
The company’s backers include Warren Buffet’s Berkshire Hathaway, which reportedly took a $ 500 million stake in NuBank in June, valuing the company at $ 30 billion at the time.
Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. led the IPO. The shares began trading at noon on Thursday under the ticker symbol NU.
12:42 p.m. ET: Dow bounces after opening dip
The Dow Jones Industrial Average rallied in midday trading Thursday after a drop in all three major US indices at the open.
The Dow Jones rose slightly at 13.08 points, while the S&P 500 continued to decline, 10.95 points at 4,690.26. The Nasdaq composite also remained in the red, falling as much as 0.75%.
Markets ignored data from the US Department of Labor released Thursday morning that showed the number of Americans filing initial jobless claims fell to the lowest level in half a century, opening lower in early trading. and concluding a recovery rally that spanned three trading sessions.
11:00 am ET: Wholesale Inventories Exceed Pre-Holiday Estimates
US wholesale inventories rose above estimates in October as businesses stock up for holiday season demand.
The latest Commerce Department figures released Thursday showed wholesale inventories rose 2.3%, slightly more than the 2.2% estimated last month and 14.4% more than the previous year.
Rising inventories at wholesalers suggest that warehouse restocking could support economic growth this quarter. US companies recently had trouble keeping inventories on hand due to supply chain delays and strong sales.
10:45 am ET: Gamestop is trading lower after disappointing earnings
Gamestop (GME) shares fell in early trading after the video game retailer posted third-quarter earnings on Wednesday, reflecting a rise in quarterly losses that disappointed investors. The stock was down as much as 6% after the markets opened on Thursday.
Wedbush analyst Michael Pachter lowered his price target from $ 45 to $ 50, attributing the downgrade to management’s lack of clarity on a digital transformation plan for the company promised in the past that “has yet to be crystallized. ”.
“Another quarter, there is still no turnaround strategy in sight,” Pachter wrote in a note to clients.
The video game company and favorite of meme stocks reported a quarterly loss of $ 1.39 per share, more than consensus estimates.
9:36 am ET: Stocks open lower
These were the main movements in the markets at 9:36 am ET:
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S&P 500 (^ GSPC): From -10.44 (-0.22%) to 4,690.77
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Dow (^ DJI): -134.51 (-0.38%) to 35,620.24
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Nasdaq (^ IXIC): -19.58 (-0.12%) to 15,767.41
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Crude (CL = F): – $ 0.54 (-0.75%) to $ 71.82 a barrel
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Gold (GC = F): – $ 2.80 (-0.16%) to $ 1,782.70 per ounce
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10-year treasury (^ TNX): -1.7 bps for 1.4920% yield
8:30 am ET: Unemployment Claims Hit New All-Time Low
New weekly jobless claims came in well below expectations, reaching their lowest level since September 1969. The Labor Department reported 184,000 claims were filed for the week ending December 4. Applications are below their pre-pandemic levels.
Continuing claims, which represent the number of people still receiving unemployment benefits through regular state programs, have also dropped and stayed below 2 million in the past week. For the week ending November 27, ongoing claims were 1,992 million.
Thursday at 8:30 am ET: Stock futures crash
These were the main movements in the markets in the first operations on Thursday:
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S&P 500 Futures (ES = F): -19.25 points (-0.41%), up to 4,679.75
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Dow Futures (YM = F): -157 points (-0.44%), up to 35,589
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Nasdaq Futures (NQ = F): -67.50 points (-0.41%) to 16,324.75
6:57 p.m. ET Wednesday: Stock futures open flat
These were the main movements in the markets in the last operations on Wednesday:
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S&P 500 futures (ES = F): -1.75 points (-0.04%), up to 4,697.25
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Dow Futures (YM = F): + -8 points (-0.02%), up to 35,728
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Nasdaq Futures (NQ = F): -16.50 points (-0.10%) to 16,375.75
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on twitter @alexandraandnyc
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