By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks moved lower in early trade
on Thursday, as investors weighed downbeat trade data from China
against better-than-expected jobless claims in the U.S.
China's March trade-account numbers released on Thursday were
much weaker than expected, feeding concerns about slowing global
demand. Stateside, weekly jobless claims dropped to the lowest
level in almost seven years, perhaps a sign the U.S. labor market
is experiencing a spring revival.
Investors also focused on mixed earnings results from retailers
such as Rite Aid Corp. (RAD) and Family Dollar Stores Inc.
(FDO)
The S&P 500 (SPX) was 4 points, or 0.2%, lower at 1,868.08.
The Dow Jones Industrial Average (DJI) fell 9 points, or 0.1%, to
16,428.49. The Nasdaq Composite (RIXF) shed 34 points, or 0.8%, to
4,174.90.
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action.
"Wall Street ignored the fact that we had several positive data
points since the last Fed meeting, yet rallied yesterday perhaps
interpreting the minutes more dovish than they previous thought,"
said Colin Cieszynski, senior market analyst at CMC Markets.
"The economy is improving, tapering is continuing apace, which
means less liquidity for Wall Street. With valuations already fair,
earnings growth may already be baked in the markets. We may see big
swings during this earnings season, but overall market will
probably stay flat in a tag of war between the bears and the
bulls," he added.
New applications for unemployment benefits fell last week to the
lowest level in almost seven years, perhaps a sign the U.S. labor
market is experiencing a spring revival.
Initial jobless claims sank by 32,000 to a seasonally adjusted
300,000 in the seven days ended April 5, the Labor Department said
Thursday. That's the lowest level since May 2007, six months before
the Great Recession began and a steeper drop than economists had
expected.
Separately, the prices paid for imported goods increased 0.6% in
March, the U.S. Labor Department said Thursday. The price of
U.S.-made goods exported to other nations climbed 0.8% in
March.
One Fed speaker will also be on tap. Chicago Fed President
Charles Evans appears in Washington, DC at 11:30 a.m. Eastern Time,
participating in a panel discussion on Global Monetary Policy and
Emerging Markets at the Brookings Institution. Evans last night
said the Fed shouldn't lift interest rates until 2016.
Gold jumps 1%; Ally slips
Asian markets brushed aside ugly trade data, after China
announced a plan to widen market access for overseas investors and
allow for direct stock-trading between Hong Kong and Shanghai.
European stocks largely gave up on gains.
Gold (GCM4) surged 1.1% and silver (SIK4) was up 2.4%. Oil
(CLK4) was mildly lower, and the dollar (DXY) remained under
pressure across major crosses.
Shares of Imperva Inc. (IMPV) fell 42%, after the
network-security company cut its outlook.
Bed, Bath & Beyond Inc.(BBBY) shares fell 7.1% after the
houseware retailer's forecast for the current quarter fell short of
forecasts, and it posted a profit and revenue decline for the
fiscal fourth quarter.
Family Dollar Stores Inc.(FDO) shares were mostly flat after the
cut-price retailer posted a fiscal second-quarter profit of 80
cents a share, which fell short of expectations. Revenue also
fell.
Rite Aid Corp.(RAD) shares rose 12% after fourth-quarter
adjusted earnings per share topped estimates.
Costco Wholesale Corp.(COST) was up 0.4% after March comparable
sales rose 5%, beating forecasts.
Ally Financial Inc.(ALLY) made a disappointing market debut on
Thursday, in what is the biggest U.S.-listed initial public
offering of the year. Shares fell 1.6% to $24.61. The U.S. Treasury
Department agreed to sell 95 million shares at $25 a piece, raising
about $2.38 billion and reducing its stake in the company.
Farmland Partners Inc. (FPI) is scheduled to begin trading on
the stock market on Thursday after pricing its initial public
offering late Wednesday.
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