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2:06 PM · 6 April 2023

US500 opens lower after jobless claims data!

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  • Wall Street opens Thursday session lower

  • Higher-than-expected jobless claims data deteriorates sentiment

  • AMC Entertainment climbs 13% after Delaware court ruling

The mood on the market deteriorated following weekly jobless claims data. Jobless claims data came in higher than expected at 228k against 200k expected by the market. Moreover, data for the previous week was revised higher from 198k to 246k, which can be seen as a strong bearish signal.

Labour market data show that the US economy is slowing, and the new reports only prove that. Fed Chairman Jerome Powell stressed at the last FOMC meeting that the condition of the labor market will be crucial when making decisions at the next meeting in early May.

Stocks from the S&P500 index categorized by industry and sector. Cap reflects weights in the index. Source: xStation5

US500 market opens lower after jobless claims reading, source: xStation5

 

The probability of target rate remaining at the level of 4.75-5.00 increases after jobless claims publication. Currently the market predicts a 56% chance that rates will remain at the current level and 43% for 25 pb increase. Source: CME Group

Company news: 

  • AMC Entertainment (AMC.US) shares rose 13% after a Delaware court denied the company’s motion to lift a status quo order that would speed the conversion of its shares.

  • Costco Wholesale (COST.US) - the warehouse club reported a decline in total comparable sales for March. Analysts said the update wasn’t surprising given the tough macroeconomic backdrop for retailers. 

  • Fox Corp. (FOXA.US) - Argus Research downgrades the media company to hold from buy. 

  • Lumentum (LITE.US) - the specialty technology hardware company reported preliminary net revenue for the third quarter that missed the average analyst estimate. Rosenblatt downgraded to neutral from buy, saying there might be more negative news ahead.

  • Pinterest Inc. (PINS.US) - Raymond James starts coverage on the social-media company with an outperform rating and $33 price target. 

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