World News

Dow rises 100 factors as he tries to interrupt his 3-day dropping streak


The Dow Jones Industrial Average rose Thursday as the 30-stock average tried to gain its first in four days.

The Dow Jones Industrial average gained around 105 points. The S&P 500 was up 0.3% while the Nasdaq Composite was up 0.38%.

The mood was boosted by a better-than-expected weekly measurement of unemployment claims. Initial jobless claims were 310,000, which was below expectations of 335,000. This marked another new low for the pandemic era.

Moderna shares rose 5% after the drug maker announced it was developing a single-dose vaccine that would combine boosters against Covid and the flu.

Some big tech stocks like Apple, Facebook and Amazon were in the green amid economic uncertainty, giving the Nasdaq a little boost.

Shares in sports retailer Lululemon rose more than 12% and furniture retailer RH rose 2% on better-than-expected gains. Lululemon also offered a stronger than forecast outlook for the third quarter and year.

Market gains have been capped as investors remained cautious to see what would happen next to the Delta variant, the economic reopening and the Federal Reserve.

Several airlines cut their forecasts on Thursday amid the Covid resurgence. United Airlines, American Airlines, and Southwest Airlines were each cautious; however, their stocks remained in the green.

Boston Beer was down more than 6% after withdrawing its earnings forecast amid slowing growth for its Hard Seltzer brand. Favorite meme GameStop fell 7% even after the video game retailer posted better-than-expected results. The retailer did not announce any outlook or major turnaround plans.

The Fed will meet September 21-22, and investors fear the central bank will slow down its $ 120 billion monthly bond purchases, which have kept interest rates low and fueled the recovery from the pandemic.

“It can’t end now. But if it does, it could end badly,” Savita Subramanian, director of equities and quantitative strategy at Bank of America, wrote in a statement on Wednesday. “If the taper doesn’t blame the S&P 500, the tightening could get worse.”

Subramanian has an S&P 500 target of 4,600 years, about 2% from here.

The European Central Bank announced on Thursday that it would slow the pace of its own bond purchases.

“Based on a joint assessment of funding conditions and the inflation outlook, the Governing Council believes that favorable funding conditions can be sustained with a moderately slower pace of net asset purchases under the (PEPP) than in the previous two quarters,” the ECB said in a statement.

CNBC Pro’s Stock Picks and Investment Trends:

On Wednesday, the Dow and S&P 500 fell for the third day in a row. Both are in the red for the week and the previous month. September can be a treacherous month for stocks historically. The market has still not recovered since the August job report released on Friday turned out much worse than expected.

The Federal Reserve stated in its latest Beige Book that US companies are experiencing rising inflation, compounded by a shortage of goods and likely to be passed on to consumers in many areas. The central bank also reported that overall growth “has declined slightly to a moderate pace” as public health concerns mount in the July-August period covered by the report.

Despite the recent losses, key benchmarks are still strong for the year and are within striking distance of their all-time highs. The S&P 500 is less than 1% away from its all-time high, up 20% in 2021. The Dow is up 14% this year, about 1.7% off a record high.