U.S. stocks slipped Thursday as investors wait for new economic data on the labor market that will give further information about a potential U.S. recession.
The Dow Jones Industrial Average shed 39 points, or 0.12%. The S&P 500 lost 0.43% and Nasdaq Composite dipped .48% as markets reacted to a slight uptick in weekly jobless claims, reported Thursday morning.
Next, all eyes are on the July nonfarm payrolls report schedule to be released Friday. The report will show whether the strength of the U.S. job market - which has been a cornerstone of shaking off recession fears - continued in July.
“With the jobs report coming tomorrow, today’s slight uptick in jobless claims isn’t likely to be a major market nor Fed mover,” Mike Loewengart, managing director of investment strategy at E*Trade at Morgan Stanley said in an email. “Investors will be waiting to see if the labor market can withstand the Fed’s rate-hike campaign as well as it did in June.”
Wall Street was coming off a strong session. On Wednesday, the Dow advanced more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.
Investors got the green light to jump back into beaten up tech names after a surprise rebound in July services PMI and comments from St. Louis Federal Reserve President James Bullard. Bullard said he does not think the U.S. is in a recession, citing job gains and low unemployment.
Investors will get another batch of earnings on Thursday. Virgin Galactic, AMC Entertainment and Beyond Meat are scheduled to report after the bell.
In addition, Federal Reserve Bank of Cleveland President Loretta Mester speaks at the Economic Club of Pittsburgh.
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