S&P 500, Dow slip as labor market restoration falters

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S&P 500, Dow slip as labor market recovery falters


The S&P 500 and the Dow edged decrease on Thursday as new coronavirus restrictions and an surprising rise in weekly jobless claims raised fears of stalling financial development within the absence of recent stimulus measures.

The New York Stock Exchange is pictured

FILE PHOTO: The New York Inventory Alternate is pictured within the Manhattan borough of New York Metropolis, New York, U.S., November 10, 2020. REUTERS/Carlo Allegri

REUTERS: The S&P 500 and the Dow edged decrease on Thursday as new coronavirus restrictions and an surprising rise in weekly jobless claims raised fears of stalling financial development within the absence of recent stimulus measures.

The report from the Labor Division, probably the most well timed knowledge on the financial system’s well being, additionally confirmed a minimum of 20.3 million individuals on unemployment advantages on the finish of October, seven months after the pandemic hit the USA.

“What was a decline in jobless claims numbers for the final couple of months has all of a sudden reversed course, in order that solely performs into the present theme of the financial system getting worse,” mentioned Kenny Polcari, managing accomplice at Kace Capital Advisors in Florida.

The S&P 500 index was set for its third straight session of losses, retreating farther from its report closing excessive hit on Monday following constructive knowledge on a coronavirus vaccine.

Buyers have additionally grow to be cautious of the financial harm inflicted by tightening enterprise restrictions as COVID-19 instances 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 would be the key,” mentioned Joe Saluzzi, co-manager of buying and selling at Themis Buying and selling in New Jersey.

“Even a smaller package deal, half a trillion, shall be properly obtained and that is the correct trick to maintain sure companies open and preserve individuals paying their hire earlier than the vaccine begins 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 0.41per cent and the S&P 500 was down 0.13per cent.

The Nasdaq Composite gained 0.55per cent, with expertise mega-caps Tesla Inc, Alphabet Inc and Amazon.com Inc rising between 0.4per cent and three.1per cent.

Worth shares, which embody banks and industrials, slipped 0.6per cent, whereas growth-linked shares, that are perceived to be much less dangerous, logged small positive factors.

The Dow Jones transportation and industrials indexes shed 0.9per cent and 0.2per cent, respectively, after every hit an all-time excessive on Wednesday.

L Manufacturers Inc surged 14.5per cent after posting better-than-expected quarterly outcomes, helped by report gross sales development at Bathtub & Physique Works and better demand for Victoria’s Secret lingerie.

Nvidia Corp slipped 1.2per cent 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)



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