By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Weekly jobless claims plunge to lowest level since 2000
NEW YORK (MarketWatch) -- U.S. stocks gave up opening gains and
drifted lower as investors weighed a barrage of mixed earnings and
a much stronger-than-expected jobless claims report.
A weekly tally of unemployment benefits fell to the lowest level
since 2000, but analysts warned that it may be due to holidays and
weather.
The S&P 500 (SPX) switched between small gains and losses
with seven of the 10 main sectors trading in the red.
The Dow Jones Industrial Average (DJI) was essentially flat, as
two-thirds of its 30 components were in negative territory.
The Nasdaq Composite (RIXF) drifted lower, as disappointing
results from companies such as Qualcomm and Yahoo were weighing on
the index.
Kim Caughey Forrest, investment analyst at Fort Pitt Capital
Group, said investors are discounting jobless claims and are
focusing on earnings.
"Lots of companies are reporting good and okay quarterly results
but are saying that 2015 is going to be tougher than they
previously thought. The market, which always looks forward, is
adjusting," Forrest said.
McDonald's Corp. (MCD) , Dow Chemical Company (DOW) shares rose
after beating earnings estimates. Qualcomm Inc. (QCOM), Yahoo
Inc.(YHOO) and Royal Caribbean Cruises Ltd.(RCL) shares dropped
sharply after missing forecasts.
In economic news, the number of people who applied for U.S.
unemployment-insurance benefits plunged 43,000 to 265,000 in the
week that ended Jan. 24, hitting the lowest tally in 14 years,
according to Labor Department data released Thursday. The decline,
the biggest since November 2012, was much larger than expected.
Separately, pending home sales cooled in December, which the
National Association of Realtors attributed to fewer homes
available for sale and a slight rise in prices. The pending home
sales index fell 3.7% during December, though the year-on-year gain
was 11.7%, the highest since June 2013.
Corporate moves: McDonald's (MCD) gained after the fast-food
giant announced that President and CEO Don Thompson will retire
March 1, and Chief Brand Officer Steve Easterbrook will take his
place.
Alibaba (BABA) shares dove after worse-than-expected sales
gains.
Ford(F) shares initially rose after the automaker posted
results, but was recently trading lower.
Shares of Facebook (FB) were unchanged after the
social-networking company on Wednesday reported results that were
slightly above consensus.
Qualcomm Inc.(QCOM) shares skidded on an outlook-cut from the
chip maker.
Amazon.com Inc.(AMZN) and Google Inc.(GOOG) are coming after the
close.
For more on today's notable movers, read our regular Movers
& Shakers column.
Overseas markets: European stocks came under moderate pressure
-- the oil and gas group in particular. Shares of Royal Dutch Shell
PLC (RDSA) (RDSB) fell 4% after the company said it plans to cut
capital expenditure by about $15 billion over the next three
years.
Oil prices (CLH5) were flat after nearing six-year lows, while
gold (GCG5) prices fell more than 1% to $1,268.40 an ounce. The
dollar (DXY) drifted lower. In Asia, the Nikkei 225 retreated on
earnings and Fed rate-hike worries.
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