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

Stock Markets Sep 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 (26)
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
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
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
HephaestusTrades 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.
 
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