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Thursday, December 7, 2023

Wall Street indexes opening mixed; Macy’s soars on 3Q sales

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Major stock indexes are opening mixed on Wall Street Thursday amid a raft of corporate earnings and news that jobless claims have fallen to a new pandemic low. The S&P 500 is up 0.2% in early trading, the Dow Jones Industrial Average is down 0.1% and the Nasdaq composite is up 0.2%. The Labor Department reported that the number of Americans applying for unemployment benefits fell for the seventh straight week to a pandemic low 268,000. Bath & Body Works is up 5.5% after reporting strong quarterly results. Macy’s soared 15% on strong quarterly sales. The 10-year Treasury yield fell.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

Global shares were mixed Thursday after stock indexes shuffled lower on Wall Street.

France’s CAC 40 edged up nearly 0.2% in early trading to 7,167.47. Germany’s DAX gained 0.2% to 16,275.17. Britain’s FTSE 100 fell 0.2% to 7,277.41. The future for the Dow industrials was trading 0.2% higher, while the future for the S&P 500 added 0.3%.

Japan’s benchmark Nikkei 225 dipped 0.3% to finish at 29,598.66, although it got a brief lift from a report by the major business daily Nikkei that Prime Minister Fumio Kishida will propose Friday a government stimulus package totaling a record 55.7 trillion yen ($488 billion). The rally quickly ran out of steam as more sobering concerns, such as the coronavirus pandemic, weighed in.

Australia’s S&P/ASX 200 edged up 0.1% to 7,379.20, while South Korea’s Kospi slipped 0.5% to 2,947.38. Hong Kong’s Hang Seng dropped 1.3% to 25,319.72. The Shanghai Composite shed 0.5% to 3,520.71.

“Without a positive lead from Wall Street overnight and a relatively quiet day in terms of economic data, sentiments in the region may be on hold, potentially leading to some sideways movement,” said Yeap Jun Rong, a market strategist at IG in Singapore.

Recent government data have shown the coronavirus pandemic continues to hurt the Japanese economy. A supply crunch in chips and other parts needed to produce autos, a mainstay of the world’s third-largest economy, is one reason.

The damage to consumer spending brought on by recent government measures to close restaurants early and open theaters to limited crowds is another factor. Japan has never had a lockdown but has called periodically for a “state of emergency” to curb the spread of infections.

Junichi Makino, chief economist for SMBC Nikko Securities, said the Japanese recovery that many initially expected to begin this year may not come until fiscal 2022, which begins in April.

“But extreme pessimism is not called for. Auto production will likely get back to normal by the October-December quarter,” he said.

Investors are also watching the Bank of Korea policy-setting meeting scheduled for next week for whether the central bank will raise its key rate. Policymakers have hinted at such a move.

U.S. stocks have been powering mostly higher over the last month as companies reported much stronger profits for the summer than analysts expected.

Inflationary pressures — and how much they hit companies’ bottom lines– are under the microscope, with many companies warning their profit margins could suffer due to supply-chain problems and higher costs for everything from workers’ wages to raw materials.

In energy trading, benchmark U.S. crude fell 74 cents to $77.62 a barrel in electronic trading on the New York Mercantile Exchange. It shed $2.40 to $78.36 per barrel on Wednesday. Brent crude, the international standard, lost 48 cents to $79.80 a barrel.

In currency trading, the recent stall in the dollar’s rally has put some Asian markets in a wait-and-see mood. The U.S. dollar rose to 114.20 Japanese yen from 114.14 yen. The euro rose to $1.1329 from $1.1322.

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