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Wall Street ends down after jobless claims hit 18-month low

Stock MarketsSep 09, 2021 06:25PM ET
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© Reuters. FILE PHOTO: A trader works at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 19, 2021. REUTERS/Andrew Kelly

By Noel Randewich

(Reuters) - Wall Street ended lower on Thursday after weekly jobless claims fell to a near 18-month low, allaying fears of a slowing economic recovery, but also stoking worries the Fed could move sooner than expected to scale back its accommodative policies.

The Labor Department said initial claims for state unemployment benefits dropped 35,000 to a seasonally adjusted 310,000 for the week ended Sept. 4, the lowest level since mid-March 2020. That suggested that job growth could be hindered by labor shortages rather than cooling demand for workers.

Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) each declined about 1%, both among the stocks weighing most on the S&P 500 and Nasdaq.

The S&P 500 real estate and healthcare indexes each fell over 1% and were the poorest performers of 11 sectors, while financials , energy and materials .SPLRCM made modest gains.

JPMorgan (NYSE:JPM) , Wells Fargo (NYSE:WFC), Citi Group and Morgan Stanley (NYSE:MS) each rose, tracking a slight rise in benchmark bond yields following the claims data.

“The problem with the market these days is it’s rotating more than it’s moving. Today, because of the jobs claims report, everyone is buying cyclical stocks," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York. “We see it as a rangebound market, between 4,400 and 4,600 (on the S&P 500).”

Investors have become more worried in recent sessions after a recent monthly jobs report showed a slowdown in U.S. hiring, suggesting the economic recovery may be losing steam faster than expected. Also dragging on sentiment has been uncertainty about when the U.S. Federal Reserve's will scale back massive measures enacted last year to shield the economy from the coronavirus pandemic.

The Dow Jones Industrial Average fell 0.43% to end at 34,879.38 points, while the S&P 500 lost 0.46% to 4,493.28.

The Nasdaq Composite dropped 0.25% to 15,248.25.

Lululemon Athletica (NASDAQ:LULU) soared 10% after providing a strong annual forecast, as demand for its yoga pants remains strong despite the easing of coronavirus restrictions.

Reports that Beijing slowed down approval for all new online video games sent shares of U.S.-listed gaming stocks Activision Blizzard Inc (NASDAQ:ATVI), Electronic Art Inc, and Take-Two (NASDAQ:TTWO) Interactive Software Inc down more than 1%.

Digital Realty (NYSE:DLR) slid 5% after the data center REIT announced a public offering of 6.25 million shares.

Volume on U.S. exchanges was 9.3 billion shares, compared with the 9.1 billion average for the full session over the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favored advancers.

The S&P 500 posted 29 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 67 new highs and 38 new lows.

Wall Street ends down after jobless claims hit 18-month low
 

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Comments (28)
VENKATESH SRINIVASAN
VENKATESH SRINIVASAN Sep 09, 2021 7:56PM ET
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With jobless claims at such low levels it suggests that economy is slowing down. If IT spends start coming down NASDAQ will see free fall. If rates are not hiked soon, it would be like inviting more trouble. Tapering asset purchases is already showing its impact as the Euphoria in the market is waning
Joel Schwartz
Joel Schwartz Sep 09, 2021 7:46PM ET
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“Wall Street ends down on news that members of the Federal Reserve are actively insider trading while lying about inflation.”
Options Trader
Options Trader Sep 09, 2021 6:54PM ET
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Low unemplyment bad, high unemployment we go to record highs. Joe Biden is a donkey good, Trump a donkey bad. Got it
Antonio Velardo
Antonio Velardo Sep 09, 2021 4:41PM ET
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Wall street ends down after ECB announcement of reduction of Pandemic Emergency Purchase Programme.
Pratt Man
Pratt Man Sep 09, 2021 4:32PM ET
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soooo . covid bad, covid good? In 10 years nobody will care or remember our problems today.
Marcel Deufel
Marcel Deufel Sep 09, 2021 4:32PM ET
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good to think like that. and not be pessimistic like others
Chunki Kim
Chunky Sep 09, 2021 4:32PM ET
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covid is joke as disease but covid is cool since I ve earned a lot of money
Chris Sundo
Chris Sundo Sep 09, 2021 4:32PM ET
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Not true! In 10 yrs we've all learned how long it took us to adapt to common sense, wearing masks and their immense benefit to our health. Chunky will catch the next Covid type of bug. He hasn't learned his lessons yet. You can bet on that
Al Gore
Al Gore Sep 09, 2021 4:29PM ET
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next week: S&P 500 ends record high after jobless claims hit 18-month low
Meru Pet
Meru Pet Sep 09, 2021 4:14PM ET
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Some woke people wanted to join a trade union, so they had to work first...
lak sher
lak sher Sep 09, 2021 4:12PM ET
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Of course jobless claims fall after the benefits expire
Jurgen Daub
Jurgen Daub Sep 09, 2021 4:12PM ET
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lazy Americans, only work as slaves
Pratt Man
Pratt Man Sep 09, 2021 4:12PM ET
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jobless claims were from last week before they expired, but nice try.
Chris Sundo
Chris Sundo Sep 09, 2021 4:12PM ET
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Same with Canadians. Gov't leaders will take note. Just envious of all the free money they got before taxes .. is it fair?
David Fong
David Fong Sep 09, 2021 4:12PM ET
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Market could use a crash.
Marcel Deufel
Marcel Deufel Sep 09, 2021 4:12PM ET
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no. too low
john dislias
john dislias Sep 09, 2021 4:11PM ET
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Hahaha the jobs good down the jobs no god down lol
AI Wu
AI Wu Sep 09, 2021 3:29PM ET
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“The problem with the market these days is it’s rotating more than it’s moving. Today, because of the jobs claims report, everyone is buying cyclical stocks," said Jay Hatfield, chief executive of Infrastructure Capital Management in New York. “We see it as a rangebound market, between 4,400 and 4,600 (on the S&P 500).” Rotation is good for active traders playing both directions. The lazy fund managers hope for set-and-forget action.
Mitchel Pioneer
Mitchel Pioneer Sep 09, 2021 3:21PM ET
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Another mitigated loss.  Watch the round of Friday FRAUD magically reverse all of it.
Ferdinando Riboni
Ferdinando Riboni Sep 09, 2021 3:07PM ET
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Americans are Lazy the World knows this
Chris Sundo
Chris Sundo Sep 09, 2021 3:07PM ET
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Americans are relatively lazy
Terry Dude
Terry Dude Sep 09, 2021 3:07PM ET
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Test Test
Test Test Sep 09, 2021 3:03PM ET
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The
Jouni Matero
Jouni Sep 09, 2021 2:43PM ET
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In titles listing this is listed as "Wall Street dips..." and when you click this title and open the news, the title is the original "Wall Street rises..." when this was written few hours ago. Come on, you lazy soab.
Mitchel Pioneer
Mitchel Pioneer Sep 09, 2021 2:22PM ET
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The flagrantly predictable 2PM breaker fires and puts the brakes on the losses.  Remarkable how "gains" don't reverse at 2PM.  No, "gains" come uninhibited, while there's intervention in every loss.  Hallmarks of the US Ponzi Scheme, biggest investment joke in the world.
Daniel Perrotta
Daniel Perrotta Sep 09, 2021 1:06PM ET
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When you have an economy over inflated with money people did not earn or exchange for goods or services, I do not believe any stocks,bonds,options, etfs that rally around that kind of money being earned and worth something can do well ever at all. Not for real.
Jon Bal
Jon Bal Sep 09, 2021 1:06PM ET
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the BS part of the business loans and grants was it didn't matter how much cash you had in the bank, as long as your income numbers were down you got tax free stimulus money.
Mitchel Pioneer
Mitchel Pioneer Sep 09, 2021 1:00PM ET
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Of course, no profit taking at the most grossly overvalued levels in history.  The criminal propping of the US Ponzi Scheme continues.  What a manipulated joke.
John Kim
John Kim Sep 09, 2021 12:56PM ET
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the Poor report on Jobs for July and drop of UI claim ending last week point to one common thing. People didn't want to work until July but they started looking or got a job before Fed UI money stopped. August n September will have better job report numbers. Tapering will begin soon enough. All these money flowing in the market people put in cause they didn't earn will start to disappear. JPowell will probably wait as long he can n cause these to be timed perfectly for maximum effect.
Ronald Warren
Ronald Warren Sep 09, 2021 12:52PM ET
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With an actual GDP of 16 trillion last year, I'm sure the master plan is to run these stocks to the moon to create capital gains as a source of revenue for the Treasury department.
Michael Angelo
Michael Angelo Sep 09, 2021 12:22PM ET
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Just Europe open high and later no more fuel to hold the PonziDayTrade.
Biji Rajaku
Biji Rajaku Sep 09, 2021 12:16PM ET
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So no worry news today?
Ricardo Diogo
Rcd72 Sep 09, 2021 11:22AM ET
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Ponzi FED
ZS Beck
ZS Beck Sep 09, 2021 11:07AM ET
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Wonder why is a sharp drop?Let me think?Oh, it’s expired.
stefan mihalea
stefan mihalea Sep 09, 2021 10:48AM ET
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in pandemic period is very realistic this index, right....
 
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