By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Weekly jobless claims drop below 300,000
Weekly jobless claims drop below 300,000
NEW YORK (MarketWatch) -- The U.S. stock market opened higher on
Thursday, as investors digested fresh signs that the labor market
is improving faster than expected.
Stronger economic data has prompted fears that the Federal
Reserve may begin rate hikes sooner than anticipated, but for now,
investors appear unfazed by the drop in weekly jobless claims to
once again below 300,000.
The S&P 500 (SPX) opened 7 points, or 0.4%, higher at
1,927.18. The Dow Jones Industrial Average (DJI) added 53 points,
or 0.3%, to 16,497.64
The Nasdaq Composite (RIXF) began the session 15 points, or
0.3%, higher at 4,369.67.
Follow MarketWatch's live blog of today's stock-market
action.
The number of people who applied for unemployment benefits fell
below 300,000 for the second time in three weeks, solidifying a
picture of an improving U.S. labor market in which layoffs remain
low and companies are hiring at the fastest pace in years.
At 3 p.m. Eastern Time, the Federal Reserve will report on
consumer credit for June.
Corporate front
21st Century Fox (NWSA) rallied 6.4% following
better-than-expected earnings results, making it the biggest riser
on the S&P 500.
Mylan Inc.(MYL) eased 1% after posting a 30% fall in earnings as
higher expenses masked a revenue rise for the generic-drug
company.
Priceline Group Inc.(PCLN) shares rose 1.5% after the company
said it plans to take a $500 million stake in Ctrip.com
International Ltd. (CTRP), China's largest online travel company.
The two companies already have a commercial agreement. Ctrip
rallied 10%.
Google Inc. (GOOG) and Barnes & Noble Inc. (BKS) are teaming
up to take on rival Amazon Inc. (AMZN) in the speedy delivery of
books, the New York Times reported Thursday. Barnes & Noble
stocks were 1.5% higher.
Shares of iDreamSky Technology Ltd. (DSKY) will begin trading on
the Nasdaq Thursday. The company describes itself as the biggest
independent mobile-game publishing platform in China. Read more
about what to know about the iDreamSky IPO.
Also read: A big week for IPOs could have sparked last week's
S&P selloff.
European questions
Investors also reacted to Mario Draghi's press conference, after
the European Central Bank left key rates unchanged, as expected.
Draghi said the euro zone's economic recovery remains "weak,
fragile, uneven" and says there has been a "slowing down" of growth
momentum.
Meanwhile, Russia revealed the specifics of its food-import ban,
introduced in retaliation against sanctions from the U.S., members
of the European Union and other nations.
European stocks struggled to show a clear direction, with the
main Stoxx 600 index off 0.1%. In Asia, the Shanghai Composite
Index tumbled 1.3% and Hong Kong's Hang Seng Index fell to its
lowest settlement in nearly two weeks as casino shares dropped.
In other markets, gold prices (GCU4) pulled back but held above
the $1,300-an-ounce level, while oil (CLU4) eased off and the
dollar (DXY) inched higher.
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