Stocks Trade Mostly Lower After Surprising Jump in Jobless Claims

Stocks were mixed Thursday as investors weighed optimism about earnings and the economic recovery and a surprising jump in U.S. unemployment claims.

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Dow Slips and S&P 500 Rises Modestly After Surprising Jump in Jobless Claims

The Dow Jones Industrial Average fell 36 points, or 0.11%, to 34,761, the S&P 500 rose 0.08% and the Nasdaq was up 0.33%.

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The yield on the benchmark 10-year Treasury fell Thursday to 1.257%. Yields dropped below 1.2% earlier this week as traders pared bets on any near-term moves on interest rates from the Federal Reserve.

The Focus Is on Stock-Picking as Macro Concerns Are Set Aside

The number of Americans filing for first-time unemployment benefits rose last week to 419,000, up 51,000 from the week earlier and higher than economists’ forecasts.

“Don’t panic” about the jobless claims data, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

He said the numbers “continue to suffer from seasonal adjustment difficulties caused by shifts in the timing and extent of the automakers’ annual retooling shutdowns from year to year.”

Robert Frick, corporate economist at Navy Federal Credit Union, said the “unexpected bump” in jobless claims “could be noise in the system, but it’s also not hard to see how the rise of the COVID-19 delta variant could add thousands of layoffs to numbers that already are double what they were pre-COVID.”

Stocks finished higher on Wednesday as investors were encouraged by solid earnings reports. About 86% of the companies in the S&P 500 that already have reported earnings have topped analysts’ expectations, according to Bloomberg.

Rallies on Wall Street both Tuesday and Wednesday recouped the losses from Monday’s steep selloff.

AT&T posted stronger-than-expected second-quarter earnings and boosted its full-year revenue guidance as it continues to build its HBO Max subscriber base while reducing churn rates in its wireless division.

Earnings reports are expected after the closing bell Thursday from Intel , Snap and Twitter .

Bitcoin rose to above $32,000, led higher by positive comments about the world’s largest cryptocurrency from Elon Musk, Jack Dorsey and Cathie Wood.

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Musk, CEO of Tesla TSLA, said the electric vehicle company might soon again accept Bitcoin for vehicle purchases.

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This article was originally published by TheStreet.

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