The stock market fell on Thursday after jobless claims fell and housing permits came in weaker than expected. Mixed earnings reports Alcoa (AA), allstate (All), Procter & Gamble (PG) and many financial stocks were tested on a wide range of criteria.
Netflix (NFLXShares lost nearly 2% before earnings accrued after the market closed. Technology earnings report will begin in the fourth quarter.
The Nasdaq Composite lost 1.1% while the S&P 500 was also down 1.1%. The Dow Jones Industrial Average lost 0.9%. The Russell 2000 index of small-cap companies fell 1.4%.
Trading volume on the Nasdaq and the New York Stock Exchange fell for the same time on Wednesday.
The yield on the benchmark 10-year Treasury note rose three basis points to 3.4%. Crude oil prices rose 0.3% to $79.72 a barrel.
Initial jobless claims fell to 190,000 vs. 205,000 in the previous week. Claims were expected to rise to 215,000, per Econoday estimates.
Economic news weighs in the stock market
said Chris Zaccarelli, chief investment officer for the Independent Advisors Alliance. “Meanwhile, jobless claims continue to rise at a slower-than-expected pace, indicating continued strength in the labor market. The Fed has raised interest rates so far, so quickly that it is likely to cause a recession – and this has been appreciated in the labor market. Bonds. What isn’t priced into the stock market is a deeper and more damaging recession, and so far the data doesn’t suggest one is imminent yet.”
Dow Jones component Microsoft (MSFT) said Wednesday that it plans to cut 10,000 jobs in response to the global economic slowdown, the company’s biggest layoffs in more than eight years. MSFT stock fell another 2% on Thursday.
Tech giant Dow Jones an Apple (AAPL) fell 0.5%.
Home starts and permits for December fell to 1.382M and 1.33M against expectations of 1.362M and 1.38M respectively.
Given that building permits fell unexpectedly last month, “the future is not bright since the level of permits is below starts,” said Jennifer Lee, chief economist at BMO Capital Markets.
However, the Home Builders Index rose to 35 on Wednesday, the first rise after 12 months of decline. It shows that sentiment is finally getting better among homebuilders.
Financial stocks and consumer appreciation lead lower
Global stock markets were mostly lower, as the Shanghai Composite Index bucked the trend, up 0.5%. Hong Kong’s Hang Seng fell 0.1% while Nikkei 225 lost 1.4%.
In London, the FTSE is down 1.1%, the German DAX is down 1.7%, and the French CAC is down 1.9%.
Alcoa shares fell 4.5% after fourth-quarter earnings fell short of expectations. Allstate lost nearly 7% after reporting a preliminary adjusted net loss for the fourth quarter that missed the consensus.
Discover shares sold down 2.5%, while KeyCorp lost nearly 5%.
electric car leader Tesla (TSLA) fell by nearly 3%, with CEO Elon Musk staying behind Involved in a lawsuit in San Francisco. Litigation will decide whether Musk’s 2018 tweets about taking private Tesla cost investors billions of dollars.
energy giant chevron (CVX) fell back below the 50-day line on Wednesday and fell another 0.3% on Thursday. It remains below 189.78 buying points for the flat base. Fourth quarter earnings due on January 27th.
CVX stock It shows a hardness of 93 out of a perfect 99 IBD composite classificationfor every IBD stock check. The composite rating is designed to help investors easily find the highest growth stocks.
Stock market movers and shakers
SEDG lost nearly 10% on Thursday, falling below the 50-day line but still inside a handle cup with a buy point at 341.78.
construction resource a lock (Quicklyrose 1.4% after beating bottom line and higher estimates.
PG stock fell 0.6% after earnings matched estimates. Procter & Gamble’s sales beat targets, but the second quarter financial report indicated worsening volume trends.
Roblox (RBLX) fell 5.6% after Morgan Stanley’s credit rating was downgraded to underweight. The analyst noted that bookings growth slowed in the second half of the year.
Exxon Enterprise (Axon), formerly known as Taser, jumped 0.3% and She set her sights on a new breakthrough. With a sustainable earnings growth rate of 17%, the security and safety company is breaking new ground Stock Warren Buffett.
Follow Michael Molinsky on Twitter @tweet
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