Dow falls 400 points as traders weigh the first jobless-claim increase since March against stimulus hopes

Dow falls 400 points as traders weigh the first jobless-claim increase since March against stimulus hopes
Johannes Eisele/AFP/Getty Images
  • US stocks slipped on Thursday as weekly jobless claims rose for the first time since March.
  • Investors are also watching for signs that Congress will announce more stimulus measures to replace the $600 weekly unemployment benefit set to expire at the end of July.
  • Shares of Tesla and Twitter climbed following positive earnings results. Tesla pared gains later in the day.
  • Read more on Business Insider.

US stocks slid on Thursday as investors digested the first rise in weekly jobless claims since March.

New US weekly jobless claims totaled 1.42 million in the week that ended on Saturday, the Labor Department reported. That was above the consensus economist estimate of 1.3 million compiled by Bloomberg. It also exceeded the prior week's 1.3 million filings, the first increase in 15 weeks.
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Here's where US indexes stood at 2:30 p.m. ET on Thursday:

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"The economy does not seem to be on sound footing anymore and the with high uncertainty with the direction of the coronavirus, businesses will likely struggle to justify hirings," said Edward Moya, a senior market analyst at Oanda.
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Investors also watched for signs that Congress will announce more stimulus measures to replace the $600 weekly unemployment benefit set to expire at the end of July.

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Earnings season continued. Shares of Tesla jumped after the company reported quarterly results that exceeded Wall Street's expectations, but pared gains later in the afternoon to trade down more than 6%. The company also posted its fourth consecutive quarterly profit, a key milestone for inclusion in the S&P 500 index.

Shares of Twitter climbed after the company reported record user growth in the second quarter. Microsoft shed more than 3% after its cloud computing and software business missed analyst expectations for revenue.

Big tech company stocks were under pressure Thursday. Shares of Facebook, Apple, Amazon, Netflix, and Google — the so-called FAANG stocks— all shed more than 2%.
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West Texas Intermediate crude fell as much as 1.2%, to $41.38 per barrel. Brent crude, the international benchmark, declined 1.2%, to $43.78 per barrel, at intraday lows.

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