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US close: Stocks book third day of losses after data dump

By Josh White

Date: Thursday 19 Jan 2023

US close: Stocks book third day of losses after data dump

(Sharecast News) - Wall Street stocks closed in the red again for the third session in a row on Thursday, as investors digested another batch of data and comments from a number of Federal Reserve bankers.

At the close, the Dow Jones Industrial Average was down 0.76% at 33,044.56, as the S&P 500 also lost 0.76% to 3,898.85, and the Nasdaq Composite was 0.96% weaker at 10,852.27.

The Dow closed 252.4 points lower on Thursday, extending the wide losses it recorded on Wednesday as market participants digested a slew of data points.

"Improved economic data out of the US has helped highlight a relatively resilient economy despite mixed earnings reports thus far," said IG senior market analyst Joshua Mahony.

"Unemployment claims dropped to the lowest weekly reading in eight months, easing fears of a sharp uptick in unemployment as recessionary pressures take hold."

Mahony said the typical relationship between economic growth and unemployment looked to be "cast aside" on this occasion, with the US economy entering the period in an environment where employers had struggled to fill their roles.

"Meanwhile, the rise in the Philly Fed manufacturing survey brings about a five-month high for the economic gauge.

"Coming off the back of a collapse in the Empire State figure in New York, this does at least allay some fears that the manufacturing purchasing managers' index will follow suit next week."

Economic data was again the flavour of the day on Thursday, with initial jobless claims figures falling by 15,000 week-on-week to 190,000, according to the Labor Department - the lowest in four months and well and truly below expectations for a print of 214,000.

On another note, housing starts fell by 1.4% month-on-month to reach an annualised pace of 1.38m, according to the Commerce Department.

However, the better-than-expected reading was offset by a downward revision to the prior month's print from 1.42m to 1.40m.

Permits, considered to be a lead indicator for activity in the sector, slipped by 1.6% over the month to 1.33m.

Finally, manufacturing sector activity in the US mid-Atlantic region improved a little at the start of 2023, according to the Federal Reserve Bank of Philadelphia, whose factory sector index rose from a reading of -13.7 in December to -8.9 in January.

Economists had forecast a reading of -10.0.

Earlier, comments from JPMorgan Chase chief executive Jamie Dimon were weighing on sentiment, after the bank's head said he thought interest rates would probably "go higher than 5%" due to "a lot of underlying inflation", which "won't go away so quick".

In equities, Procter & Gamble was down 2.11% after its second quarter profits matched expectations, although volumes were down more than estimated.

Credit card operator Discover Financial Services slipped 0.43% after its forecast for net charge-offs on transactions was worse than analysts were anticipating.

On the upside, Genius Group rocketed 290.29% after it announced the appointment of an ex-director at the FBI to investigate allegations of illegal trading of its shares.

In after-market action, Netflix was in focus after the streaming media giant's latest earnings missed expectations after a non-cash charge, although it added a more-than-forecast 7.7 million subscribers in the fourth quarter.

Shares in Netflix were down 3.23% at the closing bell, but were last up 7.14% in after-hours trading.

Reporting by Josh White for Sharecast.com. Additional reporting by Iain Gilbert.

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $484.36 1.71%
Merck & Co. Inc. (MRK) $109.90 1.02%
Chevron Corp. (CVX) $179.00 1.00%
Salesforce.Com Inc. (CRM) $146.41 0.66%
Goldman Sachs Group Inc. (GS) $350.75 0.48%
Visa Inc. (V) $220.41 0.43%
Verizon Communications Inc. (VZ) $40.06 0.23%
Travelers Company Inc. (TRV) $184.04 0.22%
International Business Machines Corporation (CDI) (IBM) $140.90 0.15%
Apple Inc. (AAPL) $135.27 0.04%

Dow Jones - Fallers

Home Depot Inc. (HD) $310.88 -3.96%
3M Co. (MMM) $118.43 -3.52%
Caterpillar Inc. (CAT) $245.75 -2.80%
Procter & Gamble Co. (PG) $142.42 -2.73%
American Express Co. (AXP) $146.85 -2.37%
Microsoft Corp. (MSFT) $231.93 -1.65%
Nike Inc. (NKE) $124.53 -1.50%
Walmart Inc. (WMT) $138.83 -1.43%
Intel Corp. (INTC) $28.42 -1.35%
JP Morgan Chase & Co. (JPM) $134.75 -1.33%

S&P 500 - Risers

Comerica Inc. (CMA) $69.84 5.91%
M&T Bank Corp. (MTB) $153.81 5.49%
Truist Financial Corp. (TFC) $47.71 4.31%
Expedia Group Inc. (EXPE) $107.07 3.08%
HF Sinclair Corporation (DINO) $54.93 2.92%
Fifth Third Bancorp (FITB) $33.64 2.81%
Zions Bancorporation (ZION) $49.52 2.61%
Perrigo Company plc (PRGO) $36.52 2.58%
Coterra Energy Inc. (CTRA) $25.30 2.51%
Apache Corp. (APA) $45.16 2.50%

S&P 500 - Fallers

Northern Trust Corp. (NTRS) $90.46 -8.60%
Charles Schwab Corp. (SCHW) $76.32 -6.22%
CenturyLink Inc. (LUMN) $5.03 -5.98%
Allstate Corp (The) (ALL) $124.76 -5.88%
VF Corp. (VFC) $28.42 -5.46%
Dish Network Corp. (DISH) $13.21 -5.24%
Stanley Black & Decker Inc. (SWK) $83.40 -5.01%
Norwegian Cruise Line Holdings Ltd (NCLH) $14.78 -4.83%
Illumina Inc. (ILMN) $196.38 -4.60%
Keycorp (KEY) $16.45 -4.58%

Nasdaq 100 - Risers

Trip.com Group Limited (TCOM) $37.57 3.30%
Expedia Group Inc. (EXPE) $107.07 3.08%
Meta Platforms Inc. (META) $136.15 2.35%
Alphabet Inc. Class C (GOOG) $93.91 2.32%
Alphabet Inc. Class A (GOOGL) $93.05 2.12%
Workday, Inc. (WDAY) $167.54 1.98%
Incyte Corp. (INCY) $83.88 1.96%
Baidu Inc. (BIDU) $128.18 1.79%
JD.com, Inc. (JD) $59.42 1.54%
Kraft Heinz Co. (KHC) $40.04 0.96%

Nasdaq 100 - Fallers

Dish Network Corp. (DISH) $13.21 -5.24%
Illumina Inc. (ILMN) $196.38 -4.60%
Align Technology Inc. (ALGN) $236.30 -4.25%
Hasbro Inc (HAS) $61.54 -4.10%
QUALCOMM Inc. (QCOM) $117.58 -3.65%
Nvidia Corp. (NVDA) $167.65 -3.52%
Asml Holdings N.V. (ASML) $630.25 -3.38%
Netflix Inc. (NFLX) $315.78 -3.23%
Applied Materials Inc. (AMAT) $106.16 -3.23%
KLA-Tencor Corp. (KLAC) $402.10 -3.12%

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