Friday, December 9, 2022

Dow Slips on Concerns Over Recovery With Weaker Jobs, Restrictions By


By Yasin Ebrahim – The Dow slipped Thursday, as investors weighed up strength in tech against weakness in value amid concerns over the economy on signs of a slowdown in the labor market and surging Covid-19 cases. 

The fell 0.28%, or 83 points. The was down 0.10%, while the rose 0.5%.

The Labor Department reported that 742,000 people filed for unemployment insurance in the week ended November 14, up 31,000 from the prior week, above economists’ forecasts for 707,000 claims.

Signs of weakness in the labor market will likely continue in the weeks ahead as the surge in the virus prompts further parts of the U.S. to impose restrictions to curb the virus.

“Overall, the back-up in claims this week is somewhat troubling, and likely indicative of what we are going to see in the next few weeks ahead,” Jefferies (NYSE:) Thomas Simons.

The U.S. reported a daily record of 1,900 deaths on Wednesday, official health data showed, with the hospitalizations from the virus nationwide hitting another record.  The Centers for Disease Control and Prevention warned against travel ahead of Thanksgiving next week.

Value stocks like financials, energy, and industrials fell into the red.

Still, there was further optimism on the vaccine front after AstraZeneca PLC (LON:)said its coronavirus vaccine had shown signs of strong immune responses among older adults.

Consumer discretionary stocks, meanwhile, received a boost from a surge in L Brands.

L Brands (NYSE:) rallied 16% following earnings that topped analyst estimates, underpinned by strong results at Bath & Body Works amid pandemic-fueled demand for soap and hand sanitizer.

Macy’s (NYSE:) reported better-than-expected earnings, but same-store sales fell short of estimates, sending its shares into the red.

Tech, however, remained above the flatline as the Fab 5 traded mostly higher. (NASDAQ:), Alphabet (NASDAQ:), Microsoft  (NASDAQ:), traded higher, while Apple (NASDAQ:) and Facebook (NASDAQ:) were marginally lower.

In other news, Shopify (NYSE:) climbed more than 4% after Jefferies upgraded the stock to a buy rating, on expectations strength in internet shopping will continue to boost demand.

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