Wall Avenue: US shares decline as COVID-19 instances surge, jobless claims rise

All of the 11 major S&P indexes were down, led by the energy and financial sectors (REUTERS)

Wall Avenue’s major indexes edged decrease on Thursday as hovering coronavirus instances and an sudden rise in weekly jobless claims raised fears of stalling progress on this planet’s largest financial system.

Preliminary claims for state unemployment advantages totaled a seasonally adjusted 742,000 for the week ended Nov. 14, in contrast with 711,000 within the prior week, the Labor Division mentioned. Economists polled by Reuters had forecast 707,000 functions.

“What was a decline in jobless claims numbers for the final couple of months has instantly reversed course, in order that solely performs into the present theme of the financial system 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 constructive information on a coronavirus vaccine.

Traders have additionally turn out to be cautious of the near-term harm attributable to tightening enterprise restrictions as COVID-19 instances proceed to climb and within the absence of contemporary stimulus measures.

“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, might be properly obtained and that is the best trick to maintain sure companies open and maintain individuals paying their lease earlier than the vaccine begins coming in.”

Market contributors are actually seeking to the Federal Reserve for indicators it may step in with contemporary financial stimulus.

At 9:37 a.m. ET, the Dow Jones Industrial Common was down 125.41 factors, or 0.43%, at 29,313.01, the S&P 500 was down 13.88 factors, or 0.39%, at 3,553.91, and the Nasdaq Composite was down 18.00 factors, or 0.15%, at 11,783.61.

All the 11 main S&P indexes had been down, led by the vitality and monetary sectors.

Worth shares, which embody banks and industrials, slipped 0.5% as buyers most well-liked the relative security of growth-linked sectors comparable to know-how.

L Manufacturers Inc surged 13.1% 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.

Division retailer operator Macy’s Inc fell 7.7% after it reported a greater than 20% fall in third-quarter comparable gross sales.

Nvidia Corp slipped 0.7% after firm executives mentioned information middle chip gross sales would fall barely within the fourth quarter.

Declining points outnumbered advancers 1.69-to-1 on the NYSE and 1.03-to-1 on the Nasdaq.

The S&P index recorded one new 52-week excessive and no new low, whereas the Nasdaq recorded 20 new highs and three new lows.

This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.

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