US stocks moved mostly sideways on Thursday, with the S&P 500 and the Dow closing lower for the second consecutive session. Nasdaq managed to recover and gained 0.54%.
The market reacted promptly to the labor market data that showed initial jobless claims had surged last week by 137,000 to 853,000, while analysts expected an increase to 725,000. This was the highest level since September, suggesting that more stimulus is needed. So far, there are no clear signs that Republicans and Democrats reach consensus in Congress. Still, US Treasury Secretary Steven Mnuchin said that talks between the two parties were making “a lot of progress,” and that’s what helped the benchmark indexes depart from session lows, with S&P 500 falling at one point by 0.75%. It closed only 0.13% lower. The Dow Jones fell 0.23%.
Energy was the best performer among the S&P’s 11 major sectors, as oil prices broke above the $50 mark for the first time since the beginning of March. The sector has increased by over 36% this quarter alone.
Meanwhile, an advisory panel to the US FDA recommended approval of Pfizer’s COVID vaccine for emergency use. The committee voted 17-4, clearing the way for the regulator to officially approve the vaccine. Previously, the UK and Canada green-lighted the same drug for emergency use. The FDA will give its verdict later today. Pfizer shares surged over 2% after-hours.
The number of COVID cases continues to surge in the US, updating the daily records of new cases and deaths.
In individual corporate news, Airbnb Inc’s shares more than doubled in their IPO debut. They opened at $146, while the IPO price was set at $68 apiece. The home rental company was valued at over $100 billion.
Oracle reported Q2 results that topped expectations. The increase in revenue was driven by strength in its cloud businesses. Still, the share price declined by 0.5%.
Adobe and Costco also reported better-than-expected results in their fourth and first quarters.
In Asia, stocks are mixed on Friday, but bears dominate, as investors monitor the stimulus talks in the US and the vaccine news.
At the time of writing, China’s Shanghai Composite is down 0.78%, and the SZSE Component has tumbled by almost 2%.
Hong Kong’s Hang Seng Index is up 0.49%.
Japan’s Nikkei 225 closed 0.39% lower, departing from session lows. South Korea’s KOSPI has gained 0.86%.
In Australia, the ASX 200 closed 0.61% lower.
In the commodity market, crude prices extend gains after surging on Thursday above $50 for the first time since early March. Prices are boosted by vaccine optimism, as investors ignored data pointing to higher-than-expected crude supply in the US. WTI has increased by 0.50% and Brent has gained 0.22%. Both brands surged about 3% on Thursday. Oil prices are set to secure gains for the sixth consecutive week.
Gold is also bullish amid disappointing US labor market data and stimulus talks uncertainty. The metal has increased by 0.12% to $1,839.
In FX, the US dollar continues to lose strength as investors await economic recovery fueled by vaccinations. The USD Index is down 0.20% to 90.640. EUR/USD is up 0.19% to 1.2159. The bloc’s currency turned bullish after the European Central Bank unveiled more stimulus to support the economy.
The pound is recovering after tumbling yesterday on UK PM Boris Johnson’s comments that a no-deal Brexit was very possible. The sterling is moving in tandem with the euro and is up against the US dollar.
The Australian dollar rose against the US currency to the highest level in 2 and a half years amid increasing demand for risk assets.
