Stocks Turn Red As Jobless Claims Rise, Gold Rallies, Oil Plummets: What's Driving Markets Thursday?

Author: Shanthi Rexaline | November 16, 2023 02:57pm

It’s a red day on Wall Street, with stocks retreating as investors assess the latest economic data indicating an increase in jobless claims and Walmart, Inc. (NYSE:WMT) delivering a cautious stance on the consumer outlook.

Treasury yields fell, as investors flocked to fixed income. The 10-year yields erased Wednesday’s uptick, settling at 4.45%.

On the data front, jobless claims exceeded expectations, totaling 231,000 last week and reaching their highest level in three months. Import and export prices came in below anticipated levels, heightening concerns about a sustained economic slowdown. Money markets have completely ruled out the probability of a Federal Reserve interest rate hike and are factoring in four rate cuts in 2024.

Oil prices plummeted by 4.8%, causing further declines in energy stocks, while precious metals acted as a safe haven, leading to gains for mining companies.

The VanEck Oil Services ETF (NYSE:OIH) dropped by 4.4%, making it the worst-performing industry today, while the VanEck Gold Miners ETF (NYSE:GDX) rallied nearly 2%, representing the best-performing industry

Cues From Thursday's Trading:

Both the S&P 500 and the Nasdaq 100 eased 0.1%, while Dow Jones Industrial Average slipped 0.3%. Small caps underperformed, shedding 1.6%.

US Index Performance On Thursday

Index	Performance (+/-)	Value
Nasdaq 100	-0.07%	15,812.71
S&P 500 Index	-0.08%	4,499.54
Dow Industrials	-0.33%	34,874.17
Russell 2000	-1.64%	1,772.76

Thursday Trading In Major US Equity ETFs

• The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.1% lower to $449.11.
• The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) fell 0.3% to $349.24.
• The Invesco QQQ Trust (NASDAQ:QQQ) fell 0.1% to $385.34, according to Benzinga Pro data.

Looking at S&P 500 sector ETFs:

• The Utilities Select Sector SPDR Fund (NYSE:XLU) rose 0.7%, outperforming other sectors.
• The Energy Select Sector SPDR Fund (NYSE:XLE) was the laggard, down 2.7%.

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Stocks In Focus:

• Cisco Systems Inc. (NASDAQ:CSCO) experienced an almost 12% decline, due to the lackluster outlook for both the current quarter and the full year.
• Palo Alto Networks Inc. (NASDAQ:PANW) saw a drop of almost 6% following the release of a billings guidance that left investors disappointed.
• NetEase, Inc. (NASDAQ:NTES) fell over 2% following the release of its quarterly results.
• Walmart slipped over 7% due to the weaker outlook.
• Alibaba Group Holding Limited (NYSE:BABA) tumbled 9% despite an earnings beat. The Chinese giant decided to postpone the listing of its Freshippo grocery unit and put the spinoff of its cloud business on hold, leaving shareholders disappointed.
• Other companies reacting to earnings are Macy’s, Inc. (NYSE:M) (up 6%) Shoe Carnival, Inc. (NASDAQ:SCVL) (down 7%) Warner Music Group Corp. (NASDAQ:WMG) (down 4%) Williams-Sonoma, Inc. (NYSE:WSM) (up 5%) and The Children’s Place, Inc. (NASDAQ:PLCE) (down 26%).
• Those reporting after the close include Applied Materials, Inc. (NASDAQ:AMAT), The Gap, Inc. (NYSE:GPS), Ross Stores, Inc. (NASDAQ:ROST) and Beazer Homes USA, Inc. (NYSE:BZH).

Commodities, Bonds, Other Global Equity Markets:

Crude oil plummeted 4.8%, with a barrel of WTI-grade crude trading at $73. The United States Oil Fund ETF (NYSE:USO) was 4.7% lower to $67.99.  

Treasuries rallied, with the iShares 20+ Year Treasury Bond ETF (NYSE:TLT) up 1.5% for the day. 

The dollar slightly eased, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), down 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.1% higher to 1.0858.

European equity indexes had a mixed session. The SPDR DJ Euro STOXX 50 Etf  (NYSE:FEZ) closed flat. 

Gold rose 1.2% to $1,982/oz. The SPDR Gold Trust (NYSE:GLD) was 1.2% higher to $183.80. Silver rose 1.6% to $23.82, with the iShares Silver Trust (NYSE:SLV) up 1.8% to $21.83. Bitcoin (CRYPTO: BTC) fell 3.6% to $36,502.

Staff writer Piero Cingari updated this report midday Thursday. 

Read Next: Larry Summers Says Market Reposing ‘Too Much Confidence In Mother Fed,’ Warns 2% Inflation Target Might Not Be Met Without Significant Downturn

Photo via Shutterstock.

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