By Anora Mahmudova and Sara Sjolin, MarketWatch
Jobless claims drop sharply, wages tick up
U.S. stocks were under selling pressure on Thursday following a
number of economic releases and earnings reports, a day after the
Federal Reserve left open the possibility of interest rate hike as
early as June.
Thursday's economic data came in above expectations and pointed
to improvement in the labor market and further inflation
stabilization - both are key gauges of U.S.economic health that the
central bank said it would use to help guide its hand as it aims to
start normalizing interest rates.
The S&P 500 (SPX) fell 15 points, or 0.7%, to 2,092.22 with
all 10 main sectors trading lower. Utilities and tech stocks were
hit the hardest. The Dow Jones Industrial Average (DJI) was off 123
points, or 0.7%, to 17,914.82.
The Nasdaq Composite (RIXF) sank 50 points, or about 1%, to
4,973.75.
Channing Smith, managing director at Capital Advisors, said
recent fluctuations in currency and bond markets have created
confusion for equity investors.
"Treasury yields have risen over the past week or so and the
euro strengthened rapidly, something that is not quite explainable.
Those unusual moves spooked investors, by creating uncertainty,"
Smith said.
He also pointed to very high valuations despite falling
earnings, but said eventually stock prices have to reconcile with
the global and domestic economic situation, which is experiencing a
slowdown.
(http://www.marketwatch.com/storyno-meta-for-guid)Investors were
also watching the latest batch of corporate earnings, including
first-quarter results from Exxon Mobil Corp. (XOM), which proved
better than expected, albeit significantly lower than its quarterly
figures a year ago.
Data:The number of people who applied for U.S. unemployment
benefits
(http://www.marketwatch.com/story/us-jobless-claims-sink-to-15-year-low-2015-04-30)fell
34,000 to 262,000 in the seven days from April 19 to April 25, the
lowest level in 15 years.
The cost of employing the average U.S. worker
(http://www.marketwatch.com/story/wages-pick-up-in-the-first-quarter-2015-04-30)climbed
0.7% in the first quarter.
Consumer spending rose a seasonally adjusted 0.4% in March
(http://www.marketwatch.com/story/consumer-spending-shows-limited-advance-in-march-2015-04-30).
But personal income was flat last month, likely reflecting slower
job creation. Inflation, as gauged by the PCE price index, climbed
0.2% in March.
The Chicago PMI jumped in April to a reading of 52.3 from 46.3
in March, to return above the 50-mark signaling expansion. A
double-digit gain in the new orders component led to the
advance.
Earnings: Reporting ahead of the bell, Exxon MobilCorp.(XOM)
posted better-than-expected profit and sales but the integrated oil
giant's results still show signs of the plunge in oil prices.
Shares fell 0.6%.
Another energy company, ConocoPhillips (COP), reported an
adjusted first-quarter loss of 18 cents, slightly bigger than what
was forecast. Shares were off slightly.
After the bell, American International Group
Inc.(AIG)LinkedInCorp.(LNKD) and Visa Inc. (V) are set to report.
Read about what's expected
(http://www.marketwatch.com/story/new-york-times-exxon-aig-linkedin-fireeye-earnings-in-focus-2015-04-30).
For more news on Thursday stock movers and shakers please read
here (http://www.marketwatch.com/storyno-meta-for-guid).
Other markets: Asian stock markets closed mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid), while European
benchmarks (http://www.marketwatch.com/storyno-meta-for-guid) were
mixed.
Crude-oil prices (CLM5) moved slightly higher
(http://www.marketwatch.com/storyno-meta-for-guid) and most metals
declined. The dollar (DXY) traded mixed against other major
currencies (http://www.marketwatch.com/storyno-meta-for-guid).
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