S&P 500 dips but index not far from record levels
By Caroline Valetkevitch (Reuters) - The S&P 500 eased in afternoon trading on Thursday after briefly trading above its record closing high level for a second day, with the Dow also falling in the wake of a disappointing forecast from Cisco Systems Inc .
By Caroline Valetkevitch
(Reuters) - The S&P 500 eased in afternoon trading on Thursday after briefly trading above its record closing high level for a second day, with the Dow also falling in the wake of a disappointing forecast from Cisco Systems Inc
The S&P 500 earlier broke above its record closing high of 3,386.15 from Feb. 19. Its intraday record high of 3,393.52 was also set on Feb. 19.
But an 11.6% slump in Cisco Systems Inc
Jobless claims fell below 1 million for the first time since efforts to curb the COVID-19 outbreak in the United States began five months ago.
Initial claims for state unemployment benefits decreased to 963,000 for the week ended Aug. 8, the lowest level since mid-March. But the expiration of a $600 weekly jobless supplement at the end of July likely contributed to the decline.
Data last week showed the economy has regained only 9.3 million jobs of the 22 million jobs lost between February and April, indicating a long road to reach pre-pandemic levels.
But Wall Street has recovered most of the trillions in market capitalization lost during the start of the pandemic and the tech-heavy Nasdaq was the first of the three major indexes to hit a record high in June. The Dow remains below its February peak.
"The outlook for earnings in the next few quarters seems to be getting watered down by a lot of big companies," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
"It's making for a sluggish market without a real catalyst to push it up and over the hurdle for good," he said.
The Dow Jones Industrial Average <.DJI> fell 135.44 points, or 0.48%, to 27,841.4, the S&P 500 <.SPX> lost 11.98 points, or 0.35%, to 3,368.37 and the Nasdaq Composite <.IXIC> added 14.74 points, or 0.13%, to 11,026.98.
Markets continue to hold on to hopes the Democrats and the White House can reach agreement on a stimulus package to help the economy recover. Unemployment benefits have been a sticking point in their talks.
The U.S. presidential election is expected to add another layer of uncertainty into markets, with roughly 12 weeks remaining until Election Day.
AMC Entertainment Holdings Inc
Declining issues outnumbered advancing ones on the NYSE by a 1.61-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored decliners.
The S&P 500 posted 13 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 16 new lows.
(Additional reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Arun Koyyur, Uttaresh.V and Tom Brown)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.