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S&P 500 Rides Tech to Close Higher After Surprise Gain in Jobless Claims

Stock MarketsJul 22, 2021 04:17PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 closed higher Thursday, after recovering intraday weakness supported by a bid up technology stocks amid falling Treasury yields following data showing a surprise rise in weekly jobless claims.

The S&P 500 rose 0.21%, the Dow Jones Industrial Average gained 0.07%, or 25 points, the Nasdaq was up 0.36%.

In the week ended July 17, initial jobless claims unexpectedly climbed by 51,000 to 419,000, a nine-week high, confounding economist estimates for a decline to 350,000. Still the move was largely brushed off by some economists, who see it as a one-off and expect the downward trend in claims to resume course.  

“At this point, we're inclined to believe that this is once again a ‘one-off’ situation with this week's back-up in claims as demand for labor remains extremely strong and there is nothing that stands out to us as a reason to have expected layoff activity to rebound. We will be looking for claims to resume their downward trend next week,” Jefferies (NYSE:JEF) said in a note.

U.S. Treasury yields were on the back foot following the data, though recovered some losses intraday. Banks were hit hard amid the stumble in yields, but technology racked up gains as lower yields make longer duration, or investments that have a longer payback period, attractive.

People’s United Financial (NASDAQ:PBCT), M&T Bank (NYSE:MTB) and Charles Schwab Corp (NYSE:SCHW) were down more than 3%.

In large-cap tech, Microsoft (NASDAQ:MSFT) was in the spotlight, hitting a fresh 52-week high as investors piled into the stock ahead of the tech giant’s quarterly results slated for next week.

“We expect another ‘beat and raise’ special from Redmond with Azure growth numbers (45%+ YoY) that exceed whisper expectations and headline numbers that comfortably exceed the Street's $44 billion and $1.90 estimate,” Wedbush said in a note.

Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN) were higher.

Energy was also a source of pain for the broader market, down nearly 1%, shrugging off rising oil prices amid weakness in Cabot Oil & Gas Corporation (NYSE:COG), Baker Hughes Co (NYSE:BKR) and Valero Energy Corporation (NYSE:VLO).

On the earnings front, Domino’s Pizza Inc (NYSE:DPZ) jumped more than 14% after the pizza chain delivered quarterly results that topped expectations on both the top and bottom lines, driven by its new menu items.

Southwest Airlines (NYSE:LUV) fell 3% as better-than-expected quarterly results were overshadowed by ongoing threat that rising Covid infections pose to travel demand.

S&P 500 Rides Tech to Close Higher After Surprise Gain in Jobless Claims
 

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Comments (13)
perplexed76 .
perplexed76 . Jul 22, 2021 11:31PM ET
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"At this point, we're inclined to believe that this is once again a ‘one-off’ situation"  best analysis i ever seen. And this guy hasn't increased jobless data by himself yet.
Michael Angelo
Michael Angelo Jul 22, 2021 8:56PM ET
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Is not about the Fed, need fiscal policy. Also cannot believe exist people that think new has a direct effect on prices, or, all will be chaos. Just think for a while.
palmer gossett
palmer gossett Jul 22, 2021 8:36PM ET
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This Biden administration is clueless
Joel Schwartz
Joel Schwartz Jul 22, 2021 7:24PM ET
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The FED has no idea what they’re doing. Someone needs to call them out.
Chris Sundo
Chris Sundo Jul 22, 2021 6:20PM ET
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makes no sense to me: why would a gain in jobless claims cause the index to go higher? maybe contrarian type of politics?
Chris Johnson
Chris Johnson Jul 22, 2021 6:20PM ET
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Nothing makes sense anymore
Ben Chod
Ben Chod Jul 22, 2021 6:20PM ET
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Increased claims is a reason to not reign in stimulous and print more keeping rates low thus great for business expansion loans
SGTMajor payne
SGTMajor payne Jul 22, 2021 6:20PM ET
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Why in God's name are they using the word "Gain"? The right word is increase... Can someone get this person a thesaurus
perplexed76 .
perplexed76 . Jul 22, 2021 6:20PM ET
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"analysts" think it's accident
New Jazenevd
New Jazenevd Jul 22, 2021 5:35PM ET
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The market does not care about jobless claims or anything else except amount of new money created daily.
Charles Lucky
Charles Lucky Jul 22, 2021 5:35PM ET
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hello 👋
Stan Smith
Stan Smith Jul 22, 2021 5:22PM ET
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So bad news doesn't count as we've all come to expect.
Ricardo Diogo
rcd72 Jul 22, 2021 5:14PM ET
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inflation will drive higher and economic growth will sink. I think the FED will print twice more money 💰💰💰 for the "recovery"...to continue....
Darryl Allen
Darryl Allen Jul 22, 2021 5:12PM ET
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Up on hopes, down on fears
Mitchel Pioneer
Mitchel Pioneer Jul 22, 2021 4:43PM ET
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Another flagrant round of criminal manipulation to close the biggest investment joke in the world green.  Assume the proper position America, the greatest investment fraud in the world has a target on your back.
mad god
mad god Jul 22, 2021 4:43PM ET
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are you holding any stock?
Patrick Joly
Patrick Joly Jul 22, 2021 4:43PM ET
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he is holding puts, a lot of puts.
James Pattison
James Pattison Jul 22, 2021 4:40PM ET
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So jobless claims are good?!? Ummm ok
Nazmul Hasan
Nazmul Hasan Jul 22, 2021 4:37PM ET
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Market is playing with with general people and making them fool.
Sam Gates
Sam Gates Jul 22, 2021 4:30PM ET
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Index go up when job claims go up . Market is fraud
Matt Brackley
Matt Brackley Jul 22, 2021 4:30PM ET
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financial system is a fraud...
dwayne dwayne
dwayne dwayne Jul 22, 2021 4:30PM ET
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The Fed is a fraud
mad god
mad god Jul 22, 2021 4:30PM ET
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what stock do you hold now?
Andrew Bevan
Andrew Bevan Jul 22, 2021 4:30PM ET
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If the current rebound is 'corrective', then it makes no sense and is a 'fraud'.
 
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