Stocks struggle | Coronavirus relief bill stalemate | Empty Manhattan apartments
EDITOR'S NOTE
Wall Street got another sign Thursday that the economy continues to recover from the coronavirus pandemic.
The Labor Department said initial weekly jobless claims fell to 963,000 in the week ended Aug. 8. That marks the first time since March that new claims came in below 1 million. It was also better than the Dow Jones estimate of 1.1 million. Continuing claims — which refer to those collecting unemployment benefits for at least two weeks — dropped by more than 600,000 to nearly 15.5 million.
"While it's impossible to argue that an economy with 25 million individuals on unemployment support is healthy, the return to a grind lower in claims is an encouraging sign," said Ian Lyngen, head of U.S. rates at BMO. The positive data was not enough to push the broader stock market meaningfully higher as the S&P 500 continued its struggles in reaching its Feb. 19 record high. The index briefly traded above its record closing high before dipping back below it.
Thursday's action saw more bifurcation between the major tech names and the so-called reopening trade. Facebook, Apple, Netflix, and Alphabet were all higher. American Airlines, Delta and Gap declined.
Concern over a new coronavirus stimulus bill also dampened market optimism on Thursday. White House economic advisor Larry Kudlow told CNBC's "Squawk on the Street" that the administration and Democrats were at a "stalemate" over the relief package.
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