Close Update: Dow Falters on Financials, Consumer Weakness as Tech Aids Nasdaq

Wall Street was mixed on Thursday, with losses in financials and media companies weighing on the Dow Jones Industrial Average and keeping the S&P 500 near the flatline by the close, while the Nasdaq Composite was kept afloat by gains in tech shares.

Financials shed 1.7% as expectations of a December rate hike slowed after a surge in weekly jobless claims in the wake of Hurricane Harvey. Insurance stocks were also losing ground as Hurricane Irma ravaged parts of the Caribbean on its way to Florida and elsewhere in the southern US.

Media names were weaker, dragging the consumer discretionary sector down 0.9% with Walt Disney ( DIS ) posting the steepest decline on the Dow Jones Industrial Average, sliding 4.4%. That’s after CEO Bob Iger warned that fourth quarter and full fiscal year earnings per share will come in below analyst estimates.

Also, Comcast ( CMCSA ) shed 6.2% after saying it expects to lose between 100,000 and 150,000 video subscribers in the third quarter. A 1.3% gain in Microsoft ( MSFT ) helped the Nasdaq shake off earlier declines, with the information technology sector rising 0.5%. Health care rose 1.1% in the S&P’s strongest increase, with also aided the Nasdaq.

Still, the tone was mostly weaker, underpinned by news late Wednesday that President Donald Trump’s economic adviser, Gary Cohn, will likely not be tapped to succeed Federal Reserve Chair Janet Yellen. Economic data also weighed, with initial jobless claims surging by 62,000 to 298,000, significantly above estimates of 241,000. That weighed on the US dollar and lifted gold futures, while Treasury prices gained, sending yields lower.

Here’s where the markets stood by the close:

US MARKETS

Dow Jones Industrial Average was down 22.86 points (-0.10%)

S&P 500 was down 0.44 points (-0.02%)

Nasdaq Composite Index was up 4.55 points (+0.07%)

GLOBAL SENTIMENT

FTSE 100 was up 0.58%

Nikkei 225 was up 0.2%

Hang Seng Index was down 0.33%

Shanghai China Composite Index was down 0.59%

UPSIDE MOVERS

(+) RH (+45.2%) Raised FY guidance

(+) CAB (+14.26%) Synovus Financial ( SNV ) secured regulatory approval to acquire Cabela’s banking unit

(+) GPRO (+12.36%) Expects Q3 revenue at high end of guidance range

(+) BMS (+10.01%) Bloomberg reports Amcor exploring takeover of Bemis

(+) CLNT (+6.97%) Entered into agreement for development of a cryptocurrency to support development of sharing ecosystem on blockchain solutions

(+) PRGO (+4.94%) Oppenheimer starts coverage with outperform rating, $88 price target

DOWNSIDE MOVERS

(-) ALNY (-15.68%) Suspends studies of Fitusiran due to patient fatality

(-) GURE (-12.56%) Shuts plants to meet new environmental rules in China

(-) HIMX (-8.84%) Oppenheimer reiterares underperform rating

(-) MDXG (-5.6%) New civil litigation brought by another former employee


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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