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Jobless claims rise to highest level in 2022

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Wells Fargo Investment Institute Head of Global Market Strategy Paul Christopher provides professional analysis of the U.S. economy in response to July’s consumer price index report being ‘better than expected.’

The number of Americans filing for unemployment benefits ticked higher last week, hitting the highest level in nine months – the latest sign that the historically tight labor market is starting to cool off.

Figures released Thursday by the Labor Department show that applications for the week ended Aug. 6 rose to 262,000 from the downwardly revised 248,000 recorded a week earlier. That is above the 2019 pre-pandemic average of 218,000 claims and marks the highest level since mid-November.

Continuing claims, or the number of Americans who are consecutively receiving unemployment aid, rose slightly to 1.428 million for the week ended July 30, up by 8,000 from the previous week’s revised level. One year ago, nearly 12.96 million Americans were receiving unemployment benefits.

For months, the labor market has been one of the few bright spots in the economy, with the July jobs report showing that the unemployment rate fell to 3.5% – the lowest level since February 2020, before the COVID-19 pandemic shut down a broad swath of the U.S. economy. Employers, meanwhile, added a stunning 528,000 jobs, nearly double what economists expected.

JULY INFLATION BREAKDOWN: WHERE ARE RISING PRICES HITTING AMERICANS THE HARDEST?

A man hands his resume to an employer at the 25th annual Central Florida Employment Council Job Fair at the Central Florida Fairgrounds. More than 80 companies were recruiting for over a thousand jobs. (Paul Hennessy/SOPA Images/LightRocket via Getty Images / Getty Images)

However, there are signs that the labor market is starting to weaken, with a plethora of companies, including Alphabet’s Google, Walmart, Apple, Meta and Microsoft, announcing hiring freezes or layoffs in recent weeks. 

“A rising risk to the market outlook is the upward trend in individuals claiming unemployment benefits,” said Jeffrey Roach, chief economist for LPL Financial. “Initial claims and continuing claims have inched higher for the last four months and suggest that the labor market will likely slow further throughout the back half of this year.”

There are growing fears that the U.S. economy is on the cusp of – or already in – a recession as a result of the Federal Reserve’s war on inflation. The central bank is raising interest rates at the fastest pace in decades as it races to cool consumer prices, which climbed 8.5% in July – a big decline from June but still near a mutli-decades high.

“Now Hiring” signs are displayed in front of restaurants in Rehoboth Beach, Delaware, on March 19, 2022. (Stefani Reynolds/AFP via Getty Images) / Getty Images)

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Policymakers approved another mega-sized, 75-basis point rate hike – triple the usual size – at their meeting in July and have since signaled they are “nowhere near” ending this tightening cycle, despite signs of a slowdown in the economy.

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US weekly jobless claims rise to 260,000 ahead of nonfarm payrolls report

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Initial claims for unemployment insurance totaled 260,000 last week, near the highest level since November amid a shift in the U.S. labor market.

The total for the week ended July 30 was in line with the Dow Jones estimate but a gain of 6,000 from the previous week’s downwardly revised level, the Labor Department reported Thursday.

In other economic news, the U.S. trade deficit in goods and services decreased to $79.6 billion in June, down $5.3 billion and slightly lower than the estimate for $80 billion.

The jobless claims number comes a day before the Bureau of Labor Statistics releases its much anticipated nonfarm payrolls report for July. That is expected the show the U.S. economy added 258,000 positions in the month, compared to the 372,000 initial June estimate and the lowest total since December 2020.

A sign for hire is posted on the window of a Chipotle restaurant in New York, April 29, 2022.

Shannon Stapleton | Reuters

“The labor market remains in good shape as the summer quarter progresses but the rise in initial claims since early April is a cold breeze blowing at the hot labor market this summer,” said Stuart Hoffman, senior economic advisor at PNC Financial Services.

Federal Reserve officials are watching the jobs market closely for clues about an economy that is showing the highest inflation rate in more than 40 years.

Jobless claims had been running around their lowest levels since the late 1960s but started ticking higher in June as inflation pressures swelled and companies started cutting back on hires. Even with robust hiring in 2021 and the first half of 2022, the total employment level is 755,000 below where it was in February 2020, the last month before the Covid pandemic hit.

The four-week moving average of jobless claims, which smooths out weekly volatility, reflects the shift in the jobs market. That number rose 6,000 from the previous week to 254,750, up sharply from the recent low of 170,500 on April 2 and the highest level of the year.

Continuing claims, which run a week behind the headline number, totaled 1.42 million, up 48,000 from the prior week and 83,000 from the beginning of July.

Trade deficit comes off record high

On the trade side, the lower deficit reflects a shift back to a more normal environment after the U.S. shortfall with its global trading partners hit a record $107.7 billion in March.

Exports rose $4.3 billion while imports declined by $1 billion. However, the goods deficit with China rose $4.7 billion to just shy of $37 billion. Imports on auto vehicles, parts and engines declined $2.7 billion while capital goods increased nearly $1 billion.

Even with the June decline in the deficit, it is still 33.4% higher than a year ago as domestic supply has failed to keep up with strong demand. That has fueled an inflation rate running at its highest level since the early 1980s.

The Federal Reserve has instituted a series of four interest rate increases this year totaling 2.25 percentage points, in part an effort to curb some of that pandemic-era demand. Fresh inflation numbers will be released next week, after June’s consumer price index showed a 12-month increase of 9.1%.

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Jobless claims edge up to highest since January; planned layoffs soar; trade deficit hits 2022 low

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A Wendy’s restaurant displays a “Now Hiring” sign in Tampa, Florida, June 1, 2021.

Octavio Jones | Reuters

Weekly jobless claims nudged higher while the U.S. trade deficit hit its lowest level of the year in May as Covid-related shutdowns gripped China, according to economic data released Thursday.

Initial filings for unemployment benefits totaled 235,000 for the week ended July 2, a gain of 4,000 from the previous period and slightly more than the 230,000 Dow Jones estimate, according to the Labor Department. The total was the highest since Jan. 15 and raised the four-week moving average to 232,500, its highest level since December 2021.

Continuing claims, which run a week behind, also moved up, rising 51,000 to 1.375 million, higher than the 1.337 million FactSet estimate.

Also on Thursday, job placement firm Challenger, Gray & Christmas reported that planned layoffs soared in June to 32,517, a 57% jump from a month ago and the highest total since February 2021.

The firm noted that the auto sector, which typically lays off this time of year, announced 10,198 cuts, bringing the yearly total to 15,578, or a 155% increase from the same period in 2021. Of the 30 industries the company follows, 10 have announced more cuts this year than in 2021.

Layoff announcements have soared in the second quarter after an extremely low level of cuts in the first three months of the year. Through June, the annual total of 133,211 is down 37% from a year ago, but the second quarter is the highest quarterly total since Q1 of 2021.

“Employers are beginning to respond to financial pressures and slowing demand by cutting costs,” said Andrew Challenger, the firm’s senior vice president. “While the labor market is still tight, that tightness may begin to ease in the next few months.”

Markets are watching Friday’s nonfarm payrolls report, which is expected to show a gain of 250,000. If that Dow Jones estimate proves accurate, it will be the lowest monthly gain since December 2020. Federal Reserve officials are watching the jobs numbers closely as they look to cool the labor market and broader economy, which is seeing its highest inflation rate since 1981.

On the trade front, the U.S. imbalance for goods and services declined to $85.5 billion, from $86.7 billion in April, according to government figures. Though it was the lowest of 2022, it was above the Dow Jones estimate of $84.7 billion.

The deficit was still up 38.4% from a year ago as demand for imports has far outstripped U.S. exports to the rest of the world.

As China grappled with a surge in Covid infections, the U.S. trade deficit with that country fell a seasonally adjusted $2.8 billion to $32.2 billion. The deficit with Mexico dropped $1.6 billion while the imbalance with Canada increased $900 million.

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Stock futures rise as investors weigh jobless claims data

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U.S. stock futures pushed higher in pre-market trading Thursday as investors weighed minutes from the Federal Reserve’s last meeting and fresh employment data out of Washington.

Futures tied to the S&P 500 rose 0.3%, while Dow Jones Industrial Average futures added 150 points, or roughly 0.5%. Contracts on the tech-heavy Nasdaq Composite advanced 0.4%.

Initial jobless claims unexpectedly edged higher last week in a potential sign the labor market may be cooling amid tighter financial conditions. First-time filings for unemployment insurance in the U.S. totaled 235,000 for the week ended July 2, increasing by 4,000 from the prior week’s reading of 231,000 claims, the Department of Labor said Thursday. Economists surveyed by Bloomberg had expected the latest reading to come in at 230,000.

The print comes ahead of the government’s monthly employment report for June due out Friday.

Elsewhere in markets, Bed Bath & Beyond stock (BBBY) popped after news that the interim CEO bought stock and GameStop stock (GME) was up more than 6% ahead of the open after the video game retailer and meme-stock darling announced late Wednesday that its board approved a four-for-one stock split in the form of a dividend.

Tesla (TSLA), Amazon (AMZN), and Shopify (SHOP) also recently announced stock splits, which increase the number of a company’s shares to give more investors access for purchasing without changing the market capitalization.

Crude oil edged up but continued to hover just under $100 per barrel after falling below that threshold for the first time since mid-May on Tuesday. The benchmark 10-year yield Treasury held at 2.9% following a slide from its recent decade high of over 3.4% in the middle of June.

Thursday’s gains in futures trading follow three straight up days for the S&P 500 index. In the previous session, the benchmark closed up 0.4% – along with slight increases for the Dow and Nasdaq – after a readout of minutes from the Federal Reserve’s June 14-15 meeting affirmed the U.S. central bank was committed to intervening as needed to rein in inflation.

“Participants concurred that the economic outlook warranted moving to a restrictive stance of policy, and they recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist,” meeting minutes stated.

Officials also discussed concerns over inflation becoming entrenched in the U.S. economy and price stability becoming increasingly difficult to restore.

American Flags hang from the NYSE during Independence Day weekend on July 03, 2022 in New York City. (Photo by John Lamparski/Getty Images)

“Many participants judged that a significant risk now facing the Committee was that elevated inflation could become entrenched if the public began to question the resolve of the Committee to adjust the stance of policy as warranted,” the minutes stated.

At the same time, concerns remain that a further ramp in interest rates to tame inflation may push the economy into recession, particularly as key economic data including consumer sentiment and spending, along with recent purchasing managers’ indices, have shown signs of softening in the latest prints. The Atlanta Federal Reserve’s GDPNow model now estimates real GDP growth in the second quarter of 2022 at -2.1%, which would meet the unofficial threshold for a recession when matched with the 1.6% decline in Q1. The official read on second quarter GDP is due July 28.

The Federal Reserve is “nervous that they might raise rates too fast and start a recession,” University of Chicago’s Booth School of Business Economics Professor Austan Goolsbee told Yahoo Finance Live on Wednesday. “That’s the tough balancing act the Fed has got made tougher by the fact that this business cycle looks nothing like a normal business cycle.”

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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Business

First-quarter GDP declined 1.5%, worse than thought; jobless claims edge lower

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A ‘We’re Hiring!’ sign is posted at a Starbucks in Los Angeles, California.

Mario Tama | Getty Images

The U.S. economic contraction to start the year was worse than expected as weak business and private investment failed to offset strong consumer spending, the Commerce Department reported Thursday.

First-quarter GDP declined at a 1.5% annual pace, according to the second estimate from the Bureau of Economic Analysis. That was worse than the 1.3% Dow Jones estimate and a writedown from the initially reported 1.4%.

Downward revisions for both private inventory and residential investment offset an upward change in consumer spending. A swelling trade deficit also subtracted from the GDP total.

The pullback in GDP represented the worst quarter since the pandemic-scarred Q2 of 2020 in which the U.S. fell into a recession spurred by a government-imposed economic shutdown to battle Covid-19. GDP plummeted 31.2% in that quarter.

Economists largely expect the U.S. to rebound in the second quarter as some of the factors holding back growth early in the year subside. A surge in the omicron variant slowed activity, and the Russian attack on Ukraine aggravated supply chain issues that had contributed to a 40-year high in inflation.

CNBC’s Rapid Update survey shows a median expectation of 3.3% growth in the second quarter; the Atlanta Fed’s GDPNow tracker also points to a rebound, but at a more subdued 1.8% pace.

One factor helping to propel growth is a resilient consumer fighting through inflation than accelerated 8.3% from a year ago in April.

Consumer spending as gauged by personal consumption expenditures increased 3.1%, better than the first estimate of 2.7%. That has come as the labor market has continued to be strong and wages are increasing rapidly, though still below the pace of inflation.

Initial jobless claims for the week ended May 21 totaled 210,000 ,a decrease from the previous 218,000, the Labor Department reported.

Continuing claims, after holding around their lowest level since 1969, edged higher for the week for the week ended May 14 to nearly 1.35 million.

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Jobless claims unexpectedly climb to 248,000

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Kelly Services CEO Peter Quigley assesses the labor market on ‘The Claman Countdown.’

The number of Americans filing for unemployment benefits unexpectedly ticked up last week, rising for the first time in a month despite elevated business demand for workers and easing omicron cases nationwide.

Figures released Thursday by the Labor Department show that applications for the week ended Feb. 12 rose to 248,000 from an upwardly revised 225,000 a week earlier, missing the 219,000 forecast by Refinitiv analysts.

JANUARY INFLATION BREAKDOWN: WHERE ARE PRICES RISING THE FASTEST?

Continuing claims, or the number of Americans who are consecutively receiving unemployment aid, fell to 1.59 million, a decrease of 26,000 from the previous week.

“Jobless claims rose unexpectedly in the most recent week, but it’s probably noise given other employment data,” said Robert Frick, corporate economist at the Navy Federal Credit Union. “One noise factor: layoffs shot up in a handful of states. We should expect claims to follow the trend of dropping along with omicron cases in the coming weeks.”

People shop for groceries at a supermarket in Glendale, California January 12, 2022. ((Photo by ROBYN BECK/AFP via Getty Images) / AP Newsroom)

The report shows that roughly 2 million Americans were collecting jobless benefits for the week ending Jan. 29, a modest decrease from the previous week; by comparison, just a little over one year ago, more than 18.9 million Americans were receiving benefits.

Claims have largely moderated as the economy recovers from the pandemic and Americans venture out to travel, shop and eat. Businesses have struggled to keep up with the demand, however, and have reported difficulties in onboarding new employees. Despite the slight uptick in claims, Thursday’s report suggests that companies are making an effort to retain the workers they already have.

Earlier this month, the Labor Department reported that employers hired 467,000 new workers in January, a surprising increase given the surge in COVID-19 cases. It also revised its estimate for job gains in November and December by a combined 709,000. 

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A separate government report showed there were 10.9 million job openings in December, and that 4.3 million Americans, or about 2.9% of the workforce, quit their jobs that month. That’s down from a fresh high of 4.5 million in November, but well above the pre-pandemic level of about 3.6 million.

A “NOW HIRING” sign is posted in the window of The Wharf Chocolate Factory at Fisherman’s Wharf in Monterey, Calif., Friday, Aug. 6, 2021.  ((AP Photo/Rich Pedroncelli) / AP Newsroom)

The data emphasizes how newly empowered workers are quitting their jobs in favor of better wages, working conditions and hours as businesses lure new workers with higher salaries – a trend dubbed the “Great Resignation.” As a result, Americans’ incomes are rising across the board as employers have ramped up hiring to offset the losses. 

The highest inflation in nearly 40 years, however, has eroded the pay gains for many workers.

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Business

U.S. weekly jobless claims

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Initial claims for unemployment insurance rose a bit more than expected even as the omicron variant spread rapidly through the U.S., the Labor Department reported Thursday.

Jobless claims totaled 207,000 for the week ended Jan. 1, higher than the 195,000 forecast and up 7,000 from the previous period.

Still, the latest data shows claims are well-anchored around a level that is even lower than before the Covid-19 pandemic, when claims were averaging around 215,000. The four-week moving average, which accounts for weekly volatility in the numbers, nudged higher to 204,500 for the current period.

Continuing claims which run a week behind the headline number, also rose, climbing to 1.75 million, for an increase of 36,000.

Weekly claims rose in New York (8,922), Pennsylvania (6,806) and Connecticut (5,992), according to unadjusted data.

In other economic news, the U.S. trade imbalance for goods and services jumped to $80.2 billion in November, an increase from October’s $67.2 billion but below the Dow Jones estimate of $81.5 billion. The total brought the trade shortfall close to September’s record $81.4 billion as the deficit increased with China, the European Union and Canada.

The jobs market, though, is the big focus this week as investors await the closely watched nonfarm payrolls report that the Labor Department will release Friday. Economists expect to see a gain of 422,000 for December, following November’s disappointing 210,000.

Thursday’s claims report won’t figure into that tally, likely showing up more when January’s numbers are compiled.

“The underlying trend in claims is downward but the speed of the drop in October and early November could not be sustained,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. “The fundamentals haven’t changed; the labor market remains extremely tight, and firms won’t let staff go unless they have no other choice. It’s possible that an extended Omicron wave would change that, but the initial impact likely is to make firms even more keen to keep people, as absenteeism due to Covid rockets.”

The total of those receiving benefits across all program fell by nearly 200,000 to 1.72 million, according to data through Dec. 18.

Though the unemployment rate has dropped to 4.2% from its pandemic-era high of 14.8%, the labor market still has a ways to go before it reaches pre-Covid levels.

Total employment remains about 3.6 million below where it was in February 2020, while the labor force participation rate is 1.5 percentage points lower at 61.8%. However, some Federal Reserve officials said at their December meeting that they see the economy close to full employment, according to meeting minutes released Wednesday.

On trade, supply-side shocks that rocked the economy in 2021 persisted into the end of the year, reflected in the strong demand for imported goods over services.

For November, imports rose $13.4 billion from October as the goods deficit increased $15.1 billion to $99 billion while the services surplus was up $2.1 billion to $18.8 billion.

On a year-to-date basis, the trade deficit surged 28.6% from the same period in 2020 as a 20.7% rise in imports outweighed an 18.2% increase in exports.

This is breaking news. Please check back here for updates.

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Business

S&P 500 hits record close, Dow, Nasdaq finish higher after durable goods rise, jobless claims steady

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Commerce Street Holdings CEO Dory Wiley makes his top picks to beat the rate hikes.

Despite more signs of persistent inflation. U.S. stocks finished strong following encouraging reports on durable goods and jobless claims and fading omicron fears. 

The Dow Jones Industrial Average climbed 196.67 points, or 0.5%, while the S&P 500 rose 0.6% to a record close and the Nasdaq Composite jumped 0.8%. U.S. markets are up more than 1.6% for the week.  

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35950.56 +196.67 +0.55%
SP500 S&P 500 4725.79 +29.23 +0.62%
I:COMP NASDAQ COMPOSITE INDEX 15653.373957 +131.48 +0.85%

The bond market had a shortened trading session, closing at 2 p.m. ET. 

US ECONOMIC GROWTH REVISED UP TO 2.3% IN THIRD QUARTER, BUT STILL LAGGED PREVIOUS MONTHS

Oil climbed 1.4% during Thursday’s trading session, trading at the $73 per barrel level. Earlier in the day, ExxonMobil battled a refinery fire in its Baytown Texas plant. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 53.13 +0.65 +1.24%
XOM EXXON MOBIL CORP. 61.02 +0.03 +0.05%

In economic data: Durable Goods, sales of big-ticket items, rebounded by 2.5% after rising just 0.1% in the prior month. The data backs up the latest Consumer Confidence Index which showed an uptick in spending plans over the next six months. 

Personal income and spending also rose with spending up 0.6% and income up 0.4%. 

On inflation, core personal consumption expenditures, which remove volatile food and energy prices, are also anticipated to jump 0.5% month-over-month in November. The year-over-year change in core PCE, which is the Federal Reserve’s preferred measure of inflation, rose 4.7%, the highest reading in almost 33 years.

Jobless claims held steady at 205,000, little changed from the previous week’s total of 206,000. Continuing claims, which track the total number of unemployed workers collecting benefits, hit 1.859 million, still hovering near a pandemic low.

COVID-19 PILL: WHAT TO KNOW

In stocks, Merck received approval from the Food and Drug Administration on its COVID-19 pill after Pfizer’s was cleared Wednesday. Additionally, Novavax fell over 3% despite news that its COVID regimen “demonstrated cross-reactive immune responses against Omicron.”

Ticker Security Last Change Change %
MRK MERCK & CO. INC. 75.73 -0.43 -0.56%
PFE PFIZER INC. 58.66 -0.87 -1.46%
NVAX NOVAVAX INC. 177.25 -6.05 -3.30%

Electric vehicle maker shares were also in focus on Thursday, with truck maker Nikola surging more than 17% following its first customer order delivery and shares of Tesla moving 5% higher as CEO Elon Musk continues to exercise his stock options. 

Ticker Security Last Change Change %
NKLA NIKOLA CORP. 11.09 +1.69 +17.98%
TSLA TESLA INC. 1,067.00 +58.13 +5.76%

The 10-year treasury yield rose to 1.492% at the end of Thursday’s trading session, its highest level since Dec. 8, after briefly topping 1.5% for the first time since Dec. 13.

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Investors continue to eye Apple. Hitting its $3 trillion market cap milestone appears likely to be pushed to 2022. Microsoft is the only other company that is a close second to this status. 

Ticker Security Last Change Change %
AAPL APPLE INC. 176.28 +0.64 +0.36%
MSFT MICROSOFT CORP. 334.69 +1.49 +0.45%

There will be no trading in equities or U.S. Treasuries on Christmas Eve on Friday. Many world markets will be closed Friday in observance of Christmas.

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 Ken Martin and The Associated Press contributed to this report.

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Business

U.S. weekly jobless claims less than expected as labor market returns to pre-pandemic self

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Initial claims for unemployment insurance rose last week but held at levels consistent with how the job market looked before the Covid-19 pandemic devastated the U.S. jobs picture, the Labor Department reported Thursday.

First-time filings for the week ended Nov. 27 totaled 222,000, less than the 240,000 Wall Street expected. That was higher than the 194,000 from the previous week, but that total, the lowest since 1969, was revised even lower from the initial 199,000 reported.

The totals are the product of heavy seasonal adjustments, though the unadjusted number was actually lower, at 211,896.

The report comes amid signs of an increasingly tight labor market, with workers leaving their positions for new jobs at the highest level on record and with hiring persisting at a brisk pace.

In addition to the brightened outlook for initial claims, continuing claims fell by another 107,000 and are now below 2 million for the first time since the early days of the pandemic. The last time continuing claims, which run a week behind the headline number, were lower than the current 1.96 million was March 14, 2020.

Virginia and Texas combined to see more than 15,000 fewer claims filed for the week, according to unadjusted data.

Thursday’s report comes a day ahead of the closely watched nonfarm payrolls count from the Bureau of Labor Statistics.

That tally is expected to show an addition of 573,000 new jobs in November, following a gain of 531,000 in October. The unemployment rate is expected to edge lower to 4.5%.

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Business

Dow Jones Today, Futures Rise As Jobless Claims Hit Pandemic Low; TSM Earnings Lift Chip Stocks; UnitedHealth, Walgreens Rally

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Stock futures shifted sharply higher Thursday, boosted by earnings reports and by a notable improvement in weekly jobless claims. Taiwan Semiconductor (TSM) and Bank of America (BAC) were early leaders on earnings news. On the Dow Jones today, UnitedHealth Group (UNH) led after reporting positive third-quarter results.




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Dow Jones futures rumbled 0.9% higher, while S&P 500 futures also swung 0.9% above fair value. Nasdaq 100 futures racked up a 1.1% gain on today’s stock market, enough to push the index into positive territory for the week.

Chip equipment makers led the Nasdaq 100, boosted by strong third-quarter results from Taiwan Semiconductor. ASML Holdings (ASML) ran at the top of the list with a 3.1% gain. Applied Materials (AMAT) and KLA (KLAC) gained more than 2%, Lam Research (LRCX) gained 1.9%. The VanEck Semiconductor ETF (SMH) climbed 1.7% in premarket trade.

Taiwan Semi jumped 3.9% following its third-quarter earnings report in which it raised guidance for the current quarter. The stock is looking to snap a five-week decline.

Vaccine maker Moderna (MRNA) ran strong, up 2.2%, ahead of a vote among advisors to the Food And Drug Administration regarding approval of a third shot of the company’s Covid-19 vaccine. Moderna shares are struggling to climb off the bottom of a nine-week correction.

Also receiving an FDA boost, biotech Regeneron Pharmaceuticals (REGN) jumped 2.7%, after the agency reportedly accepted the company’s application for its monoclonal antibody treatment for non-hospitalized Covid-19 patients. Regeneron shares are testing 200-day support after a steep, four-week breakdown.

Network storage leader NetApp (NTAP) jumped more than 3% to lead the S&P 500. Shares are technically in a buy range on a rebound from their 10-week moving average.

United Parcel Service (UPS) powered up 2.7%. Stifel upgraded the stock to buy, from hold, and raised its price target to 224, from 210.

Dow Jones Today: Walgreens, UnitedHealth Earnings

UnitedHealth Group and Walgreens Boots Alliance (WBA) topped the Dow Jones today, running strong on quarterly earnings news.

UnitedHealth added 2.6%, positioning the stock for a possible test of resistance at its 50-day moving average. The managed-care giant cleared analysts’ third-quarter revenue and earnings targets by narrow margins, and boosted its full-year earnings guidance in line with Wall Street expectations.

UnitedHealth stock is rebounding from a test of support at its 200-day line. It faces potential resistance at its 50-day moving average as it attempts to move up the right side of what IBD MarketSmith analysis plots as a flat base.

Walgreens rallied 2.2%, after reporting that fiscal fourth-quarter earnings and revenue cleared estimates. U.S. sales rose 6.6% to $28.8 billion. International sales soared 62%, to $5.5 billion.

Walgreens stock is locked in a six-month consolidation, trading below both its 10-week and 40-week moving averages.

IBD 50: Callon Pete, Diamondback Lead

On the IBD 50 list, Callon Petroleum (CPE) and Diamondback Energy (FANG) were early leaders as oil prices leaned toward a sixth-straight daily advance.

Callon ended Wednesday down more than 7% since the start of the week, pulling back after briefly topping a 60.61 buy point. The pullback went well beyond the 8% loss limit that triggers the automatic sell rule, ejecting investors and sending a caution flag about buying while the market outlook reads “in correction.”

Diamondback has been less didactic, breaking out past a 102.63 buy point on Oct. 4. Shares are narrowly extended above the cup base entry, after finding support at its short-term 10-day moving average on Wednesday.

Econ News: Jobless Claims Fall, Oil Rises

The Labor Department reported first-time applications for unemployment assistance decreased to 293,000 in the week ended Oct. 9. That marked a 10% drop vs. the prior week, and below economist projections for 320,000 claims.

The second-straight decline in weekly applications, it was also the lowest tally since March 2020, just as the pandemic got underway.

The Energy Information Administration reports weekly natural gas inventories at 10:30 a.m. ET, and weekly oil supply estimates at 11 a.m. ET.

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Oil prices swung higher, with West Texas Intermediate futures up 1.2%, trading above $81 a barrel and pushing to add an eighth week to their advance. Copper rose 1.5%, after posting a 4.6% surge on Wednesday. Bond yields were largely flat after two days of strong declines, with the 10-year Treasury yield unchanged at 1.54%.

Meanwhile, bitcoin surged nearly 5% to trade above $57,500, according to CoinDesk. The cryptocurrency moved as high as $58,518 and as low as $54,554 over the prior 24 hours.

Earnings: Bank Of America, Morgan Stanley Climb

Financials were in motion on earnings news, after a tough day of trading on Wednesday.

Bank of America popped 2.7%, trading high on the S&P 500, after reporting a better-than-expected 67% surge in earnings. Revenue also topped analyst estimates, and asset quality improvements spurred a reserve release of $1.1 billion. Bank of America stock is pulled back to test support at its 21-day exponential moving average, after rekindling a failed August breakout.

Morgan Stanley (MS) rallied 2.5% as a 28% third-quarter earnings gain swept past analyst forecasts. Revenue rose 20%, also above forecasts, as earnings received a boost from a $1.7 billion release of reserves banked against possible defaults.

A late-September spike to new highs interrupted Morgan Stanley’s basing pattern. Shares are currently consolidating below their 10-week moving average.

Nasdaq, S&P 500, Dow Jones Today

The Dow Jones today heads for the starting bell with a 1.1% loss for the week. The S&P 500 is down 0.6%. For the month, the Dow is up 1.6%. The S&P 500 has a 1.3% gain.

Meanwhile, the Nasdaq composite is down less than 0.1%. If the index holds near current levels, it would mark a second weekly close within 0.1% of the prior week. On a weekly chart, that shows as a three-weeks-tight pattern, a bullish marker usually found in stocks.

The Nasdaq and the S&P 500 both snapped three-day retreats on Wednesday. Both now have found five days of support at their short-term 10-day moving averages, but remained well below the longer-term 50-day moving averages.

The Dow remains on the fence, with a flat finish Wednesday that essentially added a fourth down day to its chart. The Dow, however, erased earlier losses. The stock market market outlook is still “in correction,” but the rally attempt, constructed upon the Oct. 4 lows for the Nasdaq and S&P 500, remains in effect.

For more detailed analysis of the current stock market and its status, study the Big Picture.

A follow-through day — a big gain by the Nasdaq or S&P 500 in rising volume — is needed to launch a new uptrend and kick the market outlook over to “confirmed uptrend.” Until that occurs, the best place for investors to be is in cash, building watchlists and waiting for the shift in market status.

Alan R. Elliott is on Twitter @IBD_Aelliott

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