Banking

Dow Jones Closes Down 260 Points After Unexpected Rise In Jobless Claims

The Dow Jones Industrial Average traded moderately lower in today’s market but closed off its lows of the day. Meanwhile, the S&P 500 also traded lower after an unexpected rise in weekly jobless claims.




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Stock Market Today

At the close on Thursday, the Nasdaq composite fell 0.7%. Meanwhile, the S&P 500 traded nearly 0.9% lower, off Wednesday’s fresh record highs. The Dow Jones industrials held a loss of 0.8%, falling 260 points. The small-cap Russell 2000 index lagged as well, selling off roughly 0.9%. Volume was running lower on the Nasdaq and higher on the NYSE vs. the close on Wednesday, according to early data.

Stocks were rocked earlier today after the Labor Department reported last week’s first-time jobless claims unexpectedly rose to 373,000. That was higher than the prior week’s upwardly revised 371,000 claims and economist projections for a drop to 353,000.

While most sectors in the S&P 500 fell, consumer discretionary stocks bucked the trend. Materials and financials led on the downside.

Elsewhere, oil prices rebounded after falling the past few days on news of a breakdown in communications between OPEC+ members. After multiple days of selling off, West Texas intermediate oil prices gained 1.3% to $73.10 a barrel near Thursday’s close, after spiking to a six-year high of $76.98 earlier this week.

But energy stocks still largely sold off, with the Energy Select Sector SPDR ETF (XLE) down 0.5%. The index still remains near new highs.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34418.44 -263.35 -0.76
S&P 500 (0S&P5) 4321.07 -37.06 -0.85
Nasdaq (0NDQC ) 14559.79 -105.27 -0.72
Russell 2000 (IWM) 221.78 -1.98 -0.88
IBD 50 (FFTY) 42.96 -0.86 -1.96
Last Update: 4:28 PM ET 7/8/2021

Growth stocks led on the downside as the Innovator IBD 50 ETF (FFTY) closed down 2%. Shares continued to tumble below support at the 50-day line, a bearish sign. Stocks leading the downside included two foreign stocks, China-based 360 DigiTech (QFIN) and Kazakhstan-based Freedom Holding (FRHC).

Dow Jones Today

Stocks underperforming in the Dow Jones on Thursday included financial giants Goldman Sachs (GS), JPMorgan (JPM) and Visa (V), with losses of more than 1% each.

Goldman Sachs sold off over 3% and breached its 50-day line in heavy volume, a sell signal for the stock. Shares already triggered a round-trip sell signal after giving up a 10% gain from the 356.95 buy point. The firm is expected to report earnings on July 13 before the market opens.

Elsewhere, fellow financial stock JPMorgan triggered the 7%-8% loss-cutting sell rule. Shares remain below the 50-day line and are about 10% off the 52-week high.

Visa stock, down 1.4%, now remains less than 1% below a 237.60 buy point of a flat base. Shares initially broke out Friday. The stock remains above support along its 50-day line since mid-May, a bullish sign. The buy range tops out at 249.48.

Apple (AAPL) snapped a seven-day win streak as shares fell roughly 0.9%. The stock is now back in the buy zone of a cup base with a buy point of 137.17, according to MarketSmith chart analysis. The stock broke out initially last Wednesday.

Shares got a boost earlier this week after JPMorgan Chase raised its price target to 170 from 165 and maintained an overweight rating.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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