US Dow extends winning streak for 7th day

10-May-24   09:37 Hrs IST
US stocks were mostly higher on Thursday, 09 May 2024, with the Dow extending winning streak for the seventh consecutive day, as new jobless claims data rekindled hopes for interest rate cuts later this year.

Market registered gains across the board, exception being technology counter, with shares in realty, energy, materials, utilities, and industrial sectors being notable gainers.

At closing bell, the Dow Jones Industrial Average index climbed up 331.37 points, or 0.85%, to 39,387.76. The S&P500 index advanced by 26.41 points, or 0.51%, to 5,214.08. The tech-heavy Nasdaq Composite index increased by 43.51 points, or 0.27%, to 16,346.25.

Total 09 of 11 S&P500 sectors closed higher along with S&P500 index. Real estate sector was top performer, rising 2.31%, while information technology sector was bottom performer, falling 0.25%.

Among individual stocks, shares of AppLovin (APP) skyrocketed after the mobile technology company reported better than expected first quarter results. The company said it saw an improvement in the app advertising market during the quarter and continues to add innovations to its software.

Glasses retailer Warby Parker also showed a substantial move to the upside after reporting net revenue increased 16.3% to $200 million. GAAP net loss for the quarter was $2.7 million, gross margin increased 1.6 points to 56.7%.

On the other hand, shares of Airbnb (ABNB) moved sharply lower after the vacation rental company reported better than expected first quarter results but provided disappointing guidance. The San Francisco-based vacation rental app said its net income rose to $264 million in the first quarter from $117 million a year earlier, on revenue that rose 18% to $2.14 billion. Airbnb projected revenue in the second quarter between $2.68 billion and $2.74 billion. The Easter holiday occurring in the first quarter rather than the second and currency-exchange impacts were partly to blame for Airbnb projecting current-quarter revenue below lofty Wall Street estimates.

ECONOMIC NEWS: US Unemployment Claims Climb To Highest Level Since August- First-time claims for U.S. unemployment benefits rose by much more than expected in the week ended May 4th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims climbed to 231,000, an increase of 22,000 from the previous week's revised level of 209,000. With the much bigger than expected increase, jobless claims reached their highest level since hitting 234,000 in week ended August 26th. The Labor Department said the less volatile four-week moving average also crept up to 215,000, an increase of 4,750 from the previous week's revised average of 210,250. Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also rose by 17,000 to 1.785 million in the week ended April 27th. However, the four-week moving average of continuing claims dipped to 1,781,000, a decrease of 6,250 from the previous week's revised average of 1,787,250.

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