U.S. Stocks Move Mostly Higher, Dow Extends Winning Streak To Seven Days
May 09 2024 - 4:48PM
IH Market News
Following the lackluster performance seen over the two previous
sessions, stocks moved mostly higher during trading on Thursday.
The Dow extended its winning streak to seven sessions, once again
reaching its best closing level in over a month.
The major averages ended the day just off their highs of the
session. The Dow jumped 331.37 points or 0.9 percent to 39,387.76,
the S&P 500 climbed 26.41 points or 0.5 percent to 5,214.08 and
the Nasdaq rose 43.51 points or 0.3 percent to 16,346.26.
The strength on Wall Street came following the release of a
Labor Department report showing a much bigger than expected
increase by first-time claims for U.S. unemployment benefits in the
week ended May 4th.
The report said initial jobless claims climbed to 231,000, an
increase of 22,000 from the previous week’s revised level of
209,000.
Economists had expected jobless claims to inch up to 210,000
from the 208,000 originally reported for the previous week.
With the much bigger than expected increase, jobless claims
reached their highest level since hitting 234,000 in week ended
August 26th.
The data may added to recently renewed optimism that the Federal
Reserve will lower interest rates in the coming months.
While the Fed is still widely expected to leave interest rates
unchanged in June, the chances rates will be lower by September
have reached 89.3 percent, according to CME Group’s FedWatch
Tool.
Among individual stocks, shares of AppLovin (NASDAQ:APP)
skyrocketed after the mobile technology company reported first
quarter results that beat expectations on both the top and bottom
lines.
Glasses retailer Warby Parker (NYSE:WRBY) also showed a
substantial move to the upside after reporting a narrower than
expected first quarter loss on revenues that exceeded
estimates.
On the other hand, shares of Airbnb (NASDAQ:ABNB) moved sharply
lower after the vacation rental company reported better than
expected first quarter results but provided disappointing
guidance.
Sector News
Telecom stocks moved sharply higher over the course of the
trading session, resulting in a 4.2 percent spike by the NYSE Arca
North American Telecom Index.
Significant strength was also visible among gold stocks, as
reflected by the 2.5 percent jump by the NYSE Arca Gold Bugs Index.
The strength in the sector came amid an increase by the price of
gold.
Commercial real estate stocks also showed a strong move to the
upside on the day, driving the Dow Jones U.S. Real Estate Index up
by 2.1 percent.
Oil service, housing and steel stocks also saw considerable
strength, moving higher along with most of the other major
sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in another mixed performance during trading on
Thursday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong
Kong’s Hang Seng Index surged by 1.2 percent.
Meanwhile, the major European markets all moved to the upside on
the day. While the German DAX Index jumped by 1.0 percent, the
French CAC 40 Index climbed by 0.7 percent and the U.K.’s FTSE 100
Index rose by 0.3 percent.
In the bond market, treasuries rebounded following the modest
pullback seen on Wednesday. As a result, the yield on the benchmark
ten-year note, which moves opposite of its price, slid 4.3 basis
points to a one-month closing low of 4.449 percent.
Looking Ahead
Trading on Friday may be impacted by reaction to a report on
consumer sentiment in the month of May, which includes readings on
inflation expectations. Remarks by several Fed officials may also
attract attention along with the latest earnings news.
SOURCE: RTTNEWS
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