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US Stocks Slip as Commodities Plunge, Jobless Claims Swell |
| by John Alfonso - 05/09/2011 |
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| "US stock markets dropped stridently during the final hour of trading on Thursday, the two of the benchmark indexes stretched their declines in to the fourth session as investors preferred profit taking ahead of important government jobs report on Friday" |
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US stock markets dropped stridently during the final hour of trading on Thursday, the two of the benchmark indexes stretched their declines in to the fourth session as investors preferred profit taking ahead of an important government jobs report on Friday.
Owen Fitzpatrick, head of the US equity group at Deutsche Bank, stated that earnings season begun strong and heading towards a sound end, more about macro driven distresses and concerning the level of growth in the economy.
Another reason for a stock down fall was the energy shares, which extended losses after crude oil dropped below $100.00 towards the end.
The managing director at ICAP Equities, Kenneth Polcari, stated that investors were indecisive in front of tomorrows nonfarm payroll report. They had already earned private sector job growth was moving ahead but with a much slower rate than expected, and unemployment claims increased than forecasts.
He added that market on a whole remained higher for most of the last session, but there was no real sign of strength in the market.
Retail stocks gained as oil prices fell to less than $100.00 per barrel, stated Jim Paulsen, Chief Investment Strategist at Wells Capital Management. Historically, oil prices had been a crucial factor in giving a consumer discretionary stocks, relative to the market.
The analyst added that retail stocks could improve, if job data showed a positive sign. The slowly rising job market had lifted consumer discretionary stocks, which would have been dented more by the surging price of crude oil since the fall.
Fitzpatrick stated that the economic data, except manufacturing, for April was quite weak, the increase in applications for jobless claims did not bode well for the Fridays payrolls data.
The government ahead of Fridays monthly payrolls report, declared that unemployment benefits suddenly jumped last week, as auto plant closures was among one of the key factors.
Unemployment claims soared 43,000 to reach 474,000 during the last week, whereas economists had projected claims to fall to 412,000.
The Labor Departments analyst, Peter Boockvar, told that one time factors were exclusively responsible. Hopefully they were precise, although claims were well above 400,000 for a fourth consecutive week.
The Dow Jones Industrial Average (INDEXDJX:DJI) slipped more than 200.00 points earlier in the session, and closed down 139.41 points or -1.10% to close at 12,584.17. The index for most of the time on an average hovered at the level of 12,683.96.96, but towards the end it fell sharply.
The volume for the last session remained some what healthy at 176.95 million shares where as the index opened at the level of 12,723.65.
Index percent gainers guided by a 0.47% rally in Intel Corporation (NASDAQ:INTC) shares. Out of thirty components, only three companies on the index posted gains during the last trading session.
The S&P 500 Index (INDEXSP:INX) dropped -0.62% or -12.22 points to settle at 1,335.10. The index experienced a lift to reach 1.345.74 and than towards the closing it slumped and gave up several points.
Index monthly performance went up by +0.19% or +2.47 points as well as it was positive for a quarter with 1.85% or +24.23 points while it climbed 12.51% or +148.42 points for the year. Including the indexs 10 industry groups, telecommunications and materials led the index to decline.
The NASDAQ Composite Index (INDEXNASDAQ:IXIC) dipped 0.48% or +13.51 points to 2,814.72. It achieved days low of 2,804.82 while the days high was 2,845.85.
Index demonstrated a better monthly performance of +0.84% or +23.53 points which made it for a quarter with +45.42 points or +1.64% while it presented solid performance of 14.36% or 353.53 for the year.
Electronic Arts Inc. and JDS Uniphase Corp. gains, as well as the latest in Ciscos reorganization efforts, underscored trading in tech stocks on Thursday, and gave a counterpoint to what was usually a downhill for the sector.
Both the S&P 500 and the NASDAQ closed with losses during the past three sessions, while the Dow eke out gain of less than half a point on Tuesday.
The stocks which added most for the session were Kendle International (KNDL) while it followed by the New Dragon Asia (NWD), ProShares UltraShort Silver (ZSL), Polypore International, (PPO), ProShares UltraShort (SCO) and DUSA Pharmaceuticals (DUSA) during the last trading session. KNDL jumped 57.68% to close the sessions trading at $14.98 while its volume reached 6.98 million shares.
iShares Silver Trust (NYSE: SLV) was among the top volume gainer for the session with 294.02 million shares. Joining the list was C, SPY, BAC, SIRI and IWM.
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