Stocks close higher, Nasdaq jumps more than 1%
U.S. stocks finished in the green on Thursday, as investors took in a basket of mixed earnings following strong results from Tesla and a weaker report from AT&T.
The Dow Jones Industrial average climbed 161.93 points, or 0.51%, and the S&P 500 rose 0.99%. The
tech-heavy Nasdaq Composite surged 1.36% in Thursday trading.
The number of Americans filing for unemployment benefits last week rose to the highest level in eight months, the latest sign that the historically tight labor market is starting to cool.
Figures released Thursday by the Labor Department show that applications for the week ended July 16 rose to 251,000 from the 240,000 recorded a week earlier. It marked the highest level for jobless claims since mid-November.
Top Senate Republican proposes ‘inflation relief’ through tax credit adjustments
Sen. Chuck Grassley, R-Iowa, plans to introduce the “Family and Community Inflation Relief Act,” which would adjust the phase-out thresholds or deductible amounts for several tax credits and other benefits for families and students.
The plan comes a week after new June inflation data from the Labor Department showed consumer prices soared 9.1% from the previous year, the fastest year-over-year jump since November 1981.
Amazon to acquire One Medical for about $3.9B
Amazon has inked a deal to acquire the San Francisco-based primary care provider for $18 per share. The transaction is valued at $3.9 billion.
Completion of the transaction is subject to approval by One Medical’s shareholders and regulatory approval.
AT&T among the S&P’s weakest stocks
If AT&T shares fall more than 10.08% it would be the largest percentage drop since July of 2002, as tracked by Dow Jones Market Data Group.
Even though the compant added more than 800,000 postpaid subscribers, cash flow is falling.
“We’re also decreasing full-year free cash flow guidance to the $14 billion range to reflect heavy investment in growth and working capital impacts related to timing of collections”
the company stated.
Jobless jump in a hiring setback
The hiring market, already historically tight, may be seeing a setback.
Tesla helps lift Nasdaq, Dow, S&P fall
U.S. stocks struggled Thursday as investors took in a basket of mixed earnings following strong results from Tesla and a weaker report from AT&T. Additionally, jobless claims rose by 7,000 to 251,000.
In commodities, oil slipped to the $89 per barrel level, down for a second straight session, as demand concerns outweighed tight global supply.
United States Oil Fund L P.
Traders are also reacting to a suprise half point interest rate hike by the European Central Bank which was the largest in 11 years.
Companies on deck for earnings after the bell will include Boston Beer, Capital One Financial, Mattel, Snap and Tenet Healthcare.
Investors will also digest the Conference Board’s index of leading economic indicators, the Philadelphia Federal Reserve’s manufacturing index and the latest in continuing and initial jobless claims.
Tesla made a big bitcoin move
Elon Musk’s Tesla delivered on its quarter while also revealing a strategic move it made with its bitcoin holdings.
Nord Stream 1 pipeline from Russia to Europe begins flowing again
The Nord Stream 1, a key pipeline from Russia to Europe, started flowing again after being shut down for 10 days due to maintenance.
Operator Nord Stream AG said natural gas started flowing again to Germany Thursday morning, but the gas flow is expected to fall short of full capacity.
Oil falls 3% on demand concerns
Oil prices fell on Thursday for a second straight session, as demand concerns outweighed tight global supply. U.S. West Texas Intermediate crude futures traded around $96.00 a barrel following a 1.9% drop on Wednesday.
Brent crude futures traded around $104.00 a barrel after slipping 0.4% in the previous session.
Oil prices have been volatile as traders have had to square tighter global supply because of the loss of Russian barrels following the country’s invasion of Ukraine, with recessionary worries that could weaken energy demand, according to Reuters
A major pipeline from Russia to Europe supplying natural gas has started flowing again after a 10-day shutdown for maintenance.
U.S. gasoline inventories rose 3.5 million barrels last week, government data showed on Wednesday, far exceeding analysts’ forecasts in a Reuters poll for a 71,000-barrel rise.
Gasoline continues to trade lower
The average price of a gallon of regular gasoline slipped on Thursday morning to $4.40, according to AAA. The price on Wednesday was at $4.467. Gas has been on the decline since hitting a high of $5.016 on June 14. Diesel slipped as well to $5.476 down from $5.497.
Cryptocurrencies trading lower Thursday morning
Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were lower Thursday morning.
Bitcoin was trading at around $22,000 after snapping a two-day winning streak. For the month, the cryptocurrency higher by more than 24%.
Ethereum was trading around $1,400.In the past week, Ethereum was trading higher by more than 37%.
Dogecoin was trading at 6 cents.
Tesla announced during its earnings report that it had converted 75% of its bitcoin investment to government currency during the quarter.