Stocks drifted Thursday as investors digested better-than-expected weekly jobs data, and eyed another set of corporate earnings results and more developments around stimulus talks in Washington. A day earlier, the S&P 500 ended higher for a fourth straight session and came within striking distance of its recent record close.
implement some of the key measures himself. ‘ data-reactid=”23″>A mixed picture of economic improvement in the U.S., especially in the labor market, has added urgency for Congress to convene on a new stimulus bill to support those affected by widespread virus-related joblessness. Discussions are set to continue in Washington, though lawmakers on both sides of the aisle appear locked in a stalemate on key issues. President Donald Trump said Thursday he was working on an executive order to implement some of the key measures himself.
“Fiscal stimulus that supported the economy during the first half of the year is wearing off and it’s unclear whether Congress will be able to provide more fiscal support, but for now markets continue to price that another stimulus package is a done deal,” Charlie Ripley, senior investment strategist for Allianz Investment Management, said in an email Wednesday.
ETSY), which has benefited from an influx of consumers turning to online shopping, saw a 137% surge in in second-quarter revenue. Gross merchandise sales jumped 146%, and even in absence of face mask sales jumped 93% over last year.’ data-reactid=”26″>After market close Wednesday, a handful of smaller-cap tech companies report results that handily topped consensus estimates. Etsy (ETSY), which has benefited from an influx of consumers turning to online shopping, saw a 137% surge in in second-quarter revenue. Gross merchandise sales jumped 146%, and even in absence of face mask sales jumped 93% over last year.
RKT), the parent company of Quicken Loans and Rocket Mortgage, opened for trading on the New York Stock Exchange at $18 per share on Thursday, matching its pricing at its initial public offering.’ data-reactid=”37″>Rocket Companies (RKT), the parent company of Quicken Loans and Rocket Mortgage, opened for trading on the New York Stock Exchange at $18 per share on Thursday, matching its pricing at its initial public offering.
The company’s initial public offering of 100 million shares at $18 apiece last night was a downsized offering, after the company earlier filed to sell 150 million shares at between $20 and $22 apiece.
9:50 a.m. ET: What economists are saying about the better than expected jobless claims report
Initial unemployment insurance claims moderated last week for the first time in three weeks, and fell to the lowest level since the start of the coronavirus pandemic. Still, it was the twentieth straight week that claims remained troublingly elevated at more than 1 million.
Here’s what some economists told Yahoo Finance about the latest print on the labor market:
“The pressure is coming off just slightly in the labor markets with unemployment claims coming down from recent highs. But we cannot be sure or not if this is good news for the recovery or whether it is the lapse in those $600 weekly checks from the federal government that is now a disincentive for some newly jobless workers to file. There are anecdotal reports that some states are tightening the eligibility requirements for unemployment benefits where jobless workers need to aggressively search for new employment opportunities to continue to receive assistance.” — Chris Rupkey, chief financial economist for MUFG Union Bank
“Though the non-seasonally adjusted number of initial unemployment claims dropping is a positive sign, the pain of the coronavirus crisis is still being felt deeply throughout the labor market … On top of all of this, the $600 expanded federal unemployment benefit has expired. In June, this $600 add-on accounted for 5.2% of all disposable income. This expiration means unemployed people’s incomes will now fall at a time when they already are struggling to pay bills and find work.” — AnnElizabeth Konkel, Indeed Hiring Lab director of economic research
“With the trajectory of the recovery still unclear, today’s numbers highlight the uncertainty in the labor market. And with stimulus talks in Washington still volleying for an answer to the unemployment problem, the future is clouded. While any positive momentum is definitely welcomed, let’s keep in mind we’re still far way from pre-pandemic levels.” — Mike Loewengart, managing director of investment strategy for E-Trade Financial
9:35 a.m. ET: Stocks open flat after jobless claims data
Here were the main moves in markets, as of 9:35 a.m. ET:
S&P 500 (^GSPC): -3.1 points (-0.09%) to 3,324.67
Dow (^DJI): +5.56 points (+0.02%) to 27,207.08
Nasdaq (^IXIC): -9.85 points (-0.08%) to 10,990.93
Crude (CL=F): +$0.30 (+0.71%) to $42.49 a barrel
Gold (GC=F): +$21.20 (+1.03%) to $2,070.50 per ounce
10-year Treasury (^TNX): -2.3 bps to yield 0.52%
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