DJIA: 31,253.13, down 236.94
S&P 500: 3,900.79, down 22.89
Nasdaq: 11,388.50, down 29.65
Stocks end lower in choppy trading
U.S. stocks finished lower during a choppy session Thursday as worries over inflation and tighter monetary policy incited a cautious tone. Corporate earnings reports from high-profile retailers have disappointed in recent days, with both Target Corp. and Walmart Inc. flagging higher costs and signs of weakening consumer spending. The S&P 500 fell 0.6% after suffering its worst session since June 2020 (-4%) yesterday, and now sits within 1.5% of bear market territory (defined as a 20% drop from a recent peak). The Dow shed 236 points, while the Nasdaq Composite lost 0.3%.
Treasuries strengthened, with the 10-year note yield down three basis points (0.03%) to 2.85%. In FOREX trading, the U.S. dollar fell 1.0% against a basket of its peers. On the data front, weekly initial jobless claims came in at 218,000, unexpectedly rising to the highest level since January. Still, continuing claims dropped to the lowest level since 1969 in the week ending May 7, underscoring a still-robust labor market. Separately, the Philadelphia Fed Business Outlook slumped more than forecasted in May to 2.6, the lowest level in two years. Finally, the leading index of economic indicators unexpectedly dipped 0.3% in April, while existing home sales declined 2.4% during the month.
In corporate news, Kohl’s Corp. gained 4.4% after executives alluded to the possibility of multiple takeover bids following a downward revision to its full-year guidance. Meanwhile, Cisco Systems Inc. retreated 13.7% after warning that lingering supply chain issues should adversely impact current-quarter results. Elsewhere, shares of Under Armour Inc. saw a double-digit percentage decline after unexpectedly announcing the departure of its CEO.
Read more about it here.
https://bit.ly/3pIztIw