Money Map Press chief strategist Shah Gilani provides insights into economic and market trends.
U.S. stock indexes rose to record highs Thursday as weekly jobless claims dipped to a pandemic-era low ahead of the August jobs report.
The Dow Jones Industrial Average added 135 points, or 0.38%, while the S&P 500 index and the Nasdaq Composite index advanced 0.39% and 0.42%, respectively. The early gains ran both the S&P and the Nasdaq to intraday all-time highs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35419.24 | +106.71 | +0.30% |
| SP500 | S&P 500 | 4540.54 | +16.45 | +0.36% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15366.545066 | +57.16 | +0.37% |
Initial jobless claims for the week ended Aug. 28 fell to 340,000, the lowest since March 2020. Continuing claims also touched their lowest level since before the coronavirus outbreak. The improvement in the claims data sets the stage for Friday’s nonfarm payroll report, which is expected to show the addition of 720,000 jobs in August as the unemployment rate fell to 5.2%.
In stocks, mega-cap technology companies Facebook Inc. and Alphabet Inc. looked to extend the record highs won on Wednesday. Apple Inc. was also flirting with its own record high.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | FACEBOOK, INC. | 378.09 | -3.96 | -1.04% |
| GOOGL | ALPHABET, INC. | 2,890.26 | -14.05 | -0.48% |
| AAPL | APPLE, INC. | 154.22 | +1.72 | +1.12% |
In earnings, Chewy Inc. shares were sharply lower after the online pet products retailer reported sales for its latest quarter and current quarter guidance missed Wall Street estimates. The company predicts its growth rate will moderate as the economy normalizes amid the easing of COVID-19 restrictions.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CHWY | CHEWY INC. | 79.91 | -7.65 | -8.74% |
| SWBI | SMITH & WESSON BRANDS | 23.50 | -1.38 | -5.55% |
Smith & Wesson Brands Inc. reported record quarterly sales that were shy of analysts’ expectations. Cost-cutting helped the gun manufacturer achieve record gross margin.
Broadcom Inc., Docusign Inc. and Hewlett Packard Enterprise Co. are among the companies set to report following the closing bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BRCM | n.a. | n.a. | n.a. | n.a. |
| DOCU | DOCUSIGN, INC. | 295.95 | -1.27 | -0.43% |
| HPE | HEWLETT-PACKARD ENTERPRISE CO. | 15.28 | -0.14 | -0.94% |
Elsewhere, Virgin Galactic Holdings Inc. is facing a Federal Aviation Administration investigation after the flight that carried Richard Branson, the company’s billionaire founder, into space reportedly veered off course.
Tesla CEO Elon Musk announced the redesigned roadster likely wouldn’t be available until 2023, three years later than initially expected.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SPCE | VIRGIN GALACTIC HOLDINGS INC. | 26.71 | -0.08 | -0.31% |
| TSLA | TESLA, INC. | 737.24 | +3.15 | +0.43% |
In commodities, West Texas Intermediate crude oil climbed $1.12 to $69.71 a barrel and gold slipped $2 to $1,814 an ounce.
Overseas trading was choppy.
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In Europe, Britain’s FTSE 100, France’s CAC 40 and Germany’s DAX 30 were all within 0.1% of their respective flat lines.
Asian bourses rallied across the board with China’s Shanghai Composite rising 0.84%, Japan’s Nikkei 225 adding 0.33% and Hong Kong’s Hang Seng index ticking up 0.24%.