Shares open higher after weak initial claims data

Stocks opened Thursday higher after weaker-than-expected labor market data and ahead of a key February jobs report on Friday morning.

Shortly after the bell opened, the S&P 500 (^GSPC) rose 0.2%, the Dow Jones Industrial Average (^DJI) rose 0.4%, and the Nasdaq Composite (^IXIC) rose 0.1%.

The weekly report on initial claims for unemployment insurance, released on Thursday morning, showed 211,000 claims filed last week, up 21,000 from the previous weak figure, in what economists at Oxford Economics called “the first hint of weakness” in this data.

“The jump in jobless claims to 211,000 last week from 190,000 is the first sign of weakness in claims data this year, but still far from the 300,000+ level that would be in line with a recession,” Michael Pierce, Lead Economist USA at Oxford. Economy wrote in a note to clients. “As the Fed continues to raise rates, we expect layoffs to eventually pick up significantly.”

Thursday’s trading session will serve as a bridge between two action-packed days of speeches by Federal Reserve Chairman Jerome Powell and February’s key jobs report on Friday morning.

Stocks ended Wednesday trading mixed after a sell-off on Tuesday, triggered by Powell’s comments that the Fed would need to raise rates higher than previously forecast amid stubborn inflation.

“I was surprised by Powell’s willingness to accelerate the pace of policy tightening, but I’m not surprised by the recognition that terminal rates will have to rise further,” said Neil Datta, head of economics at Renaissance Macro.

“Currently, the futures market is valued at [50 basis point] move in March. There’s no point in breaking down a door if you’re not going to go through it.” CME Group data shows that markets are 80% poised for a 0.50% Fed rate hike later this month.

Federal Reserve Chairman Jerome H. Powell testifies ahead of House of Financial Services hearing in case

Federal Reserve Chairman Jerome H. Powell testifies before a House of Financial Services hearing on the Federal Reserve’s Mid-Year Report on Monetary Policy on Capitol Hill in Washington, USA, March 8, 2023. REUTERS/Kevin Lamarque

Elsewhere, the price of crude oil was flat at $76.70 a barrel early Thursday after falling from close to $80 earlier this week.

Investors will also be keeping a close eye on the Treasury market, where the 10-year bond yield was around 3.97% early Thursday and the yield curve inversion made headlines earlier in the week.

In single stock news, Silvergate (SI) shares were in the spotlight early Thursday after the bank said late Wednesday that it was liquidating and winding down its operations after heavy losses amid a huge deposit outflow from its digital asset customer base.

Silvergate shares, which have lost more than 95% over the past year, are down 38% in early trading.

Other stocks moving early Thursday included MongoDB (MDB), which fell about 9% after a disappointing quarterly report.

On the other hand, Asana (ASAN) shares rose 20% shortly after the first bell.

Click here for the latest stock market news and in-depth analysis, including stock events.

Read the latest financial and business news from Yahoo Finance

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button