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Investing.com – The Dow slipped Thursday but losses were kept in a check by a surge in energy stocks and hopes of a stimulus roll out before year-end to underpin the economy amid signs of trouble in the labor market.
The Dow Jones Industrial Average fell 0.26 %, or 78 points. The S&P 500 was down 0.12%, while the Nasdaq Composite rose 0.37%.
The number of Americans filing for unemployed increased by 853,000 in the week ended Dec. 5, well above estimates for a rise of 725,000. The rise above 850,000 for the first time in nearly two months will likely continue following increased restrictions in several states to deal with the spread of Covid-19.
“[W]e are inclined to believe that we will see more steady increases [in jobless claims] from here based on the trajectory of COVID,” Jefferies (NYSE:JEF) said in note.
Still, the backdrop of a softer jobs market has been overshadowed somewhat by ongoing hopes stimulus relief will be agreed upon by year-end to help shore up the recovery.
U.S. lawmakers on Wednesday agreed a one-week stopgap funding bill to keep the government open and buy more time to resolve key differences including state and local government support and business liability protect.
Energy stocks jumped more than 4% as oil prices continued to rack up gains amid rising bets a vaccine roll out will kickstart travel-related activity boosted fuel demand.
In technology, investor sentiment remained timid following weakness in the sector a day earlier, when the FTC and several states sued Facebook for alleged antitrust violations.
Yet Wall Street continues to suggest that the break-up of Facebook is unlikely. “We are skeptical that a federal court will compel a divestiture, and equally skeptical that a divided Congress will pass a law that forces such a result,” Wedbush said in a note.
Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) were in the red, while Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) traded higher.
On the vaccine front, meanwhile, the Federal Drug and Food Administration started the review of the Pfizer-BioNtech Covid-19 vaccine on Thursday morning. The health regulator will examine the safety and efficacy of the vaccine, with many expected it to be approved soon after for emergency use authorization.
In other news, Airbnb (NASDAQ:ABNB) marked its debut in style, surging 132% to $160 amid signs of strong demand for the home rental firm’s stock, which had an initial public offering price of $68 a share.
