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Stock market today: S&P 500 closes lower halting record run as payrolls loom

Published 12/04/2024, 07:25 PM
Updated 12/05/2024, 04:07 PM
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Investing.com-- The S&P 500 fell Thursday, halting three straight days of closing records, as investors digested a slew of earnings and labor market data, a day ahead of the nonfarm payrolls report. 

At 4:00 ET (20:00 GMT), the Dow Jones Industrial Average 248 points, or 0.6%, the S&P 500 index fell 0.2%, while the NASDAQ Composite was down  0.2%. 

Jobless claims surprises to upside ahead of key labor market report

US initial jobless claims rose to 224,000 in the week ended Nov. 30 from an upwardly revised 215,000 in the prior week, compared with economists' expectations for 215,000. 

The higher-than-expected weekly jobless claims print, however, didn't knock ongoing expectations that the labor market remains in a good place and is likely to see a rebound following October's weather-related hit to job gains.  

Nonfarm payrolls due Friday are expected to have increased by just over 200,000 jobs in November, on Friday, after rising by 12,000 in October, the lowest number since December 2020.

"We don’t think the Fri jobs report will forestall a 12/18 rate cut, but it (and a hot CPI on 12/11) could certainly cause Powell and the supplemental to shift in a hawkish direction later this month," Vital Knowledge said in a Thursday note.

Federal Reserve Chair Jerome Powell pointed to strength in the US economy that allows the Fed to be more cautious in considering further easing.

Retail earnings continue

There are more quarterly earnings to digest Wednesday, with the retail sector in particular focus.

Dollar General (NYSE:DG), stock gave up gains to close just above the flatline after the discount chain operator reported third-quarter revenue that surpassed expectations, while also trimming the upper end of its annual profit forecast on hurricane-related expenses.

Kroger (NYSE:KR) stock rose 1% after the retailer reported third-quarter revenue that missed analyst estimates, while American Eagle Outfitters (NYSE:AEO) stock slumped 14% after it cut its target for annual comparable sales growth, in signs that apparel demand could be erratic during the critical holiday season.

Five Below (NASDAQ:FIVE) stock rose more than 10% after the discount retailer reported better-than-expected third quarter results, raised its full-year outlook and announced the appointment of a new CEO.

American Airlines (NASDAQ:AAL) stock soared nearly 17% after the carrier raised its adjusted profit guidance for the current-quarter, banking on better pricing power on the backdrop of strong demand in travel.

Bitcoin scales $100K for first ever as crypto enthusiasm continues 

Bitcoin (BitfinexUSD) jumped above $100,000 for the time ever, hitting a high of $104,000 before paring some gains as optimism on a pro-crypto Trump administration continues to attract bullish bets. 

President-elect Trump recently nominated crypto advocate Paul Atkins as SEC Chair, fulfilling his campaign promise to make the U.S. the crypto capital of the world.

Atkins' tenure could end the "regulation by enforcement" era, Bernsteins said, taking the shackles off innovation in the blockchain industry that could see bitcoin hit a cycle-high of $200,000 in late 2025. 

Crypto-related stocks including Coinbase Global Inc (NASDAQ:COIN), MicroStrategy Incorporated (NASDAQ:MSTR), and Marathon Digital Holdings Inc (NASDAQ:MARA) failed to catch a bid on bitcoin's latest surge.

(Peter Nurse, Ambar Warrick contributed to his article.)

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