Stocks fell for their third straight session on Thursday as near-term stimulus hopes continued to dim and a disappointing jobs report displayed another sign that economic recovery is stalling.
The Labor Department's weekly jobless claims for the week ended Oct. 10 totaled 898,000, above consensus economist estimates for 825,000 and the pervious week's total of 845,000. Continuing claims, however, trended lower. For the week ended Oct.3, roughly 10 million claims were filed, a decline from the 11 million recorded the previous week and below expectations. Still, the coronavirus pandemic will remain a threat to the job market until the outbreak is brought under control most likely by a vaccine.
Meanwhile, stimulus talks between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued, with Mnuchin telling CNBC's "Squawk Box" in an interview that he is no longer "going to let the testing issue stand in the way," of further stimulus. President Donald Trump also encouraged Congress to pass a package above his current offer of $1.8 trillion, telling Fox Business "Go big or go home." However, further stimulus before the Nov.3 election still seems unlikely, as Congressional lawmakers remain divided on multiple issues.
Here's how the market settled on Thursday:
S&P 500 Index (SPY ): -0.15% or -5.34 points to 3,483.33
Dow Jones Industrial Average (DIA ): -0.07% or -18.68 points to 28,495.32
Nasdaq Composite Index (QQQ ): -0.47% or -54.86 points to 11,713.87
For Major Stock News, Facebook (FB ) and Twitter (TWTR ) traded lower after the two social media giants suppressed a New York Post article on their platforms, with the controversial decision seen as a political choice rather than monitoring. F.C.C. Chairman Ajit Pai stated soon after that the agency will clarify the scope of Section 230, which offers a liability shield to internet companies from third party content. Fastly (FSLY ) shares dropped over 27% after the cloud computing services provider cut is third-quarter revenue guidance as its largest customer, TikTok, decreased its usage.
For Sector Performance, industries left Thursday's session mixed with six of the 11 sectors ended higher, after all began market trading in negative territory. Energy (XLE ) and Financials (XLF ) saw the biggest performance gains as positive corporate earnings from big banks and and better-than- expected U.S. crude inventory data. Communication Services (XLC ) and Health Care (XLV ) were the worst performers, with megacaps like Facebook and Twitter slumping and Vertex Pharmaceuticals's (VRTX ) clinical trial halt affecting the sectors.
For Commodities and Currency, the U.S. Dollar (UUP ) climbed on Thursday as signs of the U.S. economic recovery stalling and additional stimulus delays maintaining investors risk appetite. The dollar index rose 0.5% after reaching a one-week high against other global currencies. Gold (GLD ) priced increased as President Trump called for a larger stimulus package before the Nov. 3 election, but the strong greenback held back big gains from inflation plays. Spot gold rose 0.3% to $1,906.15 per ounce, while gold futures settled 0.1% higher at $1,908.90 per ounce. Crude oil futures were pressured on Thursday as new coronavirus restrictions dampened outlook. However, prices rebounded from early lows following a drop in U.S. oil inventories last week. International benchmark Brent Crude slipped 0.6% to $43.06 per barrel, while West Texas Intermediate (USO ) fell 0.19% lower to $40.96 per barrel.
For Friday, market participants will focus on fresh data for retail sales and consumer sentiment, as well as any updates/progress towards additional near-term stimulus.