Wall Street manages to trim losses.
In the US stock market on Thursday, 08 January, 2008 stocks ended mixed and little lower. The indices pared almost all their losses in the final couple of hours of trading. The technology and energy sectors ended higher today and Dow was the only index to end in the red. The big names in technology stocks helped Nasdaq register gains. Once again, from economic reports to sales data from retailers - all were grim. Top of its, Wal-Mart cut its fourth quarter forecast.
On Wall Street, the Dow Jones industrial average ended lower by 27 points at 8,742.7, the Nasdaq closed higher by 18 points at 1,617 and the S&P 500 closed higher by 3 points at 909.65.
Eight of the ten sectors ended in the green today. Consumer discretionary and financials were the only laggards.
Wal-Mart today announced disappointing December comparables and lowered its profit outlook.
Among other disappointing sales reports, most of the retailers today reported dismal December same-store sales results. Many retailers lowered their earnings outlooks in response to the uncertain economic environment.
Among the major economic reports for the day, the Labor Department reported that initial jobless claims fell 24,000 to a seasonally adjusted 467,000 in the week ended 3 January, 2009. Despite the decline in the most recent weekly data, the level of initial claims is 42% higher than the year-earlier period. The four-week average of new claims fell 27,000 to 525,750, and is up 53% from the prior year.
Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs. Benefits are generally available for those who lose their full-time jobs through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work.
The report also detailed that the number of people collecting benefits in the week ended 27 December, 2008 rose 101,000 to 4.61 million - the highest level since November 1982. The four-week average of continuing claims rose 45,000 to 4.47 million, the highest level since December 1982. The insured unemployment rate remained at 3.4%.
Volume on the New York Stock Exchange came to nearly 1.2 billion, and advancers outpaced decliners more than 3 to 2. On the Nasdaq, almost 754 million shares traded, and advancers led decliners 8 to 5.
Tomorrow, market will focus on the December jobs report which will be the main trading catalyst. Market expects that the U.S. shed jobs for the 12th month in a row. The unemployment rate is forecast to rise to 7% from 6.7%.
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