Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Wall Street opens in the red after jobless claims unexpectedly rise

% of readers think this story is Fact. Add your two cents.

The main indices on Wall Street slumped on Thursday morning after the latest US jobless figures proved a nasty surprise for markets.

In the early minutes of trading, the Dow Jones Industrial Average was down 0.69% at 31,391 while the S&P 500 dropped 0.77% to 3,901 and the Nasdaq fell 1.13% to 13,807.

Sentiment was knocked by data for the week to February 13 which showed that 861,000 American filed for unemployment benefits in the period, up 13,000 on the prior week’s figure and well above the 765,000 predicted by analysts. The previous week’s figure was also revised upwards to 848,000 from 793,000.

Ian Shepherdson at Pantheon said despite the jump last week he expected to see “a sustainable downward trend emerge over the next couple months as the economy gradually reopens”, although he added that claims “likely will be temporarily boosted by the extraordinarily severe weather across much of the country this week”.

8:00am: Wall Street to head lower

The main US indices are heading for a sluggish start on Thursday as investors awaited the latest set of jobless claims data.

Spread-better quotes expect the Dow Jones Industrial Average to shed 94 points at the opening bell, while the S&P 500 is expected to drop 13 points and the Nasdaq is predicted to slide 95 points.

The weekly jobless claims are expected to fall from 793,000 to 765,000, with David Madden at CMC Markets UK noting that “should the [jobless] reading fall below 779,000 it would be the lowest level since early December”.

While markets have been driven higher in recent weeks by signs that the economy could be starting to recover from the pandemic, notably vaccine rollouts and good quarterly results, momentum appears to be running out with few catalysts remaining to push equities upwards.

The recent power outages amid brutal winter conditions in Texas may also give some investors cause for concern, particularly in terms of gas and oil prices, which have been pushed higher as Texan oil production is slowed by the freezing weather.

Meanwhile, observers will also be keeping an eye on the Congressional hearing later today concerning the GameStop Corp (NYSE:GME) saga, with testimony due from a number of key actors in the incident including the CEO of trading app Robinhood, the boss of social network Reddit and YouTube investor Roaring Kitten.

Four things to watch for on Thursday:

  • Big names in the earnings diary will include computer chip maker Applied Materials Inc (NASDAQ:AMAT) and utility company Southern Co (NYSE:SO)
  • Retail giant Walmart Inc (NYSE:WMT) will also be in focus after the company unveiled plans for a US$20bn stock buyback despite its earnings falling short of forecasts
  • Tech giants Facebook Inc (NASDAQ:FB) and Google parent Alphabet Inc (NASDAQ:GOOGL) will also be looked at after the former sparked outrage in Australia by banning all news content while the latter struck a deal with Australian news publishers for content
  • Meanwhile, on the macro front investors will be keeping an eye on the latest weekly jobless figures, as well as the Philly Fed manufacturing index

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.