By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks moved sharply lower on
Thursday, as the selloff in the previously highflying biotech and
Internet stocks again spilled into the broader market.
Stocks were already lower after downbeat trade data from China
rattled nerves, feeding concerns about slowing global demand.
Before the opening bell, investors gave a tepid and short-lived
welcome to a jobless claims report. New application for
unemployment benefits dropped to the lowest level in almost seven
years, suggesting that the U.S. labor market might be experiencing
a spring revival.
The S&P 500 (SPX) fell 20 points, or 1.1%, to 1,851.79. The
Dow Jones Industrial Average (DJI) fell 111 points, or 0.7%, to
16,325.11.
The Nasdaq Composite (RIXF) shed 86 points, or 2.1%, to
4,097.71. The Nasdaq Biotechnology index dropped 4.1%, triggering
indiscriminate selling in the rest of the market.
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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.
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 is 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.
Retailers report mixed earnings, Ally slips on debut
Bed, Bath & Beyond Inc.(BBBY) shares fell 6.2% 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 down 1.2% after the
discount-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 10% 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.
Shares of Imperva Inc. (IMPV) fell 41%, after the
network-security company cut its outlook.
Ally Financial Inc.(ALLY) made a disappointing market debut on
Thursday, in what was the biggest U.S.-listed initial public
offering of the year. Shares fell 2.3% to $24.43. 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.
Gold jumps 1%; Asia stocks rise
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.
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