US open: Stocks rise after jobless claims data
US stocks rose on Thursday in holiday-thinned trade, as investors digested the latest jobless claims, with the Dow and the S&P hitting record highs.
At 1605 GMT, the Dow Jones Industrial Average was up 0.1% at 36,529.54, the S&P 500 was 0.2% higher at 4,800.41 and the Nasdaq was 0.5% firmer at 15,841.97.
Figures out earlier from the Department of Labor showed that initial jobless claims came in at 198,000 for the week to December 25, below expectations of 208,000 but still strong. This followed last week's print of 206,000, revised up from 205,000.
Continuous jobless claims dropped sharply to 1.716 million in the week ending December 18, the data showed, well below expectations for a small rise to 1.868m from the previous week's 1.856m (which itself was revised down from 1.859M). The insured unemployment rate fell to 1.3% from 1.4% in the prior week.
The four-week moving average was 199,250, a decrease of 7,250 from the previous week's revised average. This is the lowest level for this average since October 25, 1969 when it was 199,250. The previous week's average was revised up by 250 from 206,250 to 206,500, the DoL said.
IG market analyst Joshua Mahony said: "US markets are leading the way higher this afternoon, with the Nasdaq coming back into favour despite recent fears around rising treasury yields. With the new year closing in, we have seen markets gradually grind higher on low volumes. Market sentiment continues to straddle fears of near-term Covid restrictions and expectations of a swift recovery, with value and growth names fluctuating as a result. Nonetheless, the move towards higher rates and higher yields should bring a rare period of outperformance for value names once the Omicron wave starts to subside.
"Today brought a rare data point worth considering, with unemployment claims dropping back below the 200k threshold for just the third time in 22-months. Next week brings the latest US jobs report, with traders keeping an eye out for signs that the Omicron wave is having a detrimental impact on the economic recovery. Nonetheless, the lack of any pop in jobless claims today does highlight how things appear relatively stable in the face of rising Covid cases."
On the corporate front, Biogen shares slumped after Samsung denied a Korean media report that the US biotech was in talks to sell itself to the company.