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Stocks Pressured as Jobless Claims Are More Than 1 Million

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Stocks were pressured Thursday. Poor risk sentiment was a theme as another rough jobless claims reading shows that the economic recovery is stalling. 

S&P 500 was essentially flat in premarket trading, before dipping slightly into the red. The 10-Year Treasury yield was down to 0.52%. 

Tech gains have been easing and the Nasdaq dipped into the red, falling 0.1%, leaving other sectors to pick up the slack for the broader market. 

But with jobless claims for the past week coming in at 1.19 million, albeit better than expectations of 1.4 million, it is clear that the economic recovery continues to be far slower than it was in past months this year. The spread of the virus, paused state reopening, interest rates that likely have almost found their floor and an opaque picture for more fiscal stimulus are factors not conducive to a fast recovery. 

Some cyclical sectors were down. Large cap oil fell about 0.25%. Consumer discretionary was down 0.5%. 

Positively, President Trump said he would support another $25 billion in federal aid to support the airline industry. Airlines were up, with American Airlines  (AAL) - Get American Airlines Group, Inc. Report up 3%. 

Elsewhere, Uber  (UBER) - Get Uber Technologies, Inc. Report is reporting earnings after the bell and is down about 12% since June 8. But data points from analysts in the quarter show ridesharing and Eats could potentially beat estimates. The stock rose 2.2%. This gives a chance for investors to find growth tech during economic hardship, especially for those investors who want to avoid the recently high-flying mega-cap FAANG group. 

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