US STOCKS-Futures recoup some losses as jobless claims fall to near 18-month low

  • 9/9/2021
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(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.) * U.S. weekly jobless claims fall to lowest since mid-March 2020 * Gaming stocks drop on Beijing crackdown * Lululemon jumps on strong earnings forecast * GameStop drops on silence over turnaround plan * Futures: Dow flat, S&P down 0.04%, Nasdaq flat (Updates prices, adds comment) Sept 9 (Reuters) - Wall Street futures recouped some losses on Thursday after data showed weekly jobless claims fell to a near 18-month low, allaying fears of a slowing economic recovery due to the impact of the Delta coronavirus variant. The Labor Department said initial claims for state unemployment benefits dropped 35,000 to a seasonally adjusted 310,000 for the week ended Sept. 4, the lowest level since mid-March 2020. “As the market struggles to snap out of its losing streak this week, the pandemic-era low for jobless claims could be a potential catalyst,” said Mike Loewengart, managing director, investment strategy, at E*TRADE Financial. Heavyweight technology stocks including Apple Inc, Microsoft Corp, and Amazon.com Inc turned positive in premarket trading following the data. Investor mood has been glum this week after a recent jobs report showed a slowdown in U.S. hiring and on worries over a slowing economy due to the rapidly spreading Delta variant of the coronavirus. The uncertainty over the U.S. Federal Reserve’s stimulus tapering timeline has also been a drag on sentiment. “There is some caution in the market regarding the Delta variant, but the weakness seen this week seems to be a blip on the horizon as equities continue to perform better than other assets and we expect activity to return to normal this month,” said Seema Shah, chief strategist at Principal Global Advisors. At 9:00 a.m. ET, Dow e-minis were down 5 points, or 0.01%, S&P 500 e-minis were down 2 points, or 0.04%, and Nasdaq 100 e-minis were up 2.5 points, or 0.02%. Video game retailer GameStop Corp tumbled 10.1% as the company’s silence on its turnaround plan left its army of small-time investors questioning the meteoric rise in its share price this year. Reports that Beijing had temporarily suspended approval for all new online video games, sent shares of U.S.-listed gaming stocks Roblox Corp, Activision Blizzard Inc, Electronic Art Inc, and Take-Two Interactive Software Inc down between 0.3% and 1.9%. Athletic apparel maker Lululemon Athletica Inc jumped 12.9% after it forecast annual revenue and profit above estimates. (Reporting by Shashank Nayar in Bengaluru; Editing by Anil D’Silva)

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