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US markets closed mostly lower on Thursday

02 Dec 2016 Evaluate

The US markets closed mostly lower on Thursday, while the Dow Jones Industrial Average bucked the broader market’s weakness to close at a record high. Investors were pocketing short-term profits as the market consolidates following a strong run-up since early November has contributed to the selling pressure. An Italian referendum on proposed constitutional reform on Sunday, widely viewed as a vote of confidence in Prime Minister Matteo Renzi, also prompted jitters. Meanwhile, the Atlanta Federal Reserve’s GDP Now forecast model showed that the US economy is on track to grow at a 2.9 percent annualized pace in the fourth quarter following the latest data on manufacturing and construction spending. The latest fourth-quarter GDP estimate was higher than the 2.4 growth rate calculated. Data releases were mixed but pointed to continued growth in the labor market and manufacturing.

The number of Americans applying for unemployment benefits jumped in the most recent week, but stayed close to multi-decade lows. Initial jobless claims rose by 17,000 to a seasonally adjusted 268,000 in the November 26 week. The four-week moving average of claims, which smooths out weekly volatility, rose by 500 to 251,500. Claims have been below 300,000 since early 2015, the longest such streak since 1970. Employers’ reluctance to part with workers is one sign of a tight labor market. Continuing claims, which account for people already collecting unemployment benefits, rose 38,000 to 2.08 million in the most recent week. The four-week moving average ticked up 12,750 to 2.04 million.

On the other hand, US manufacturing companies expanded at the highest level in five months, a key survey of executives found. The Institute for Supply Management said its manufacturing index rose to 53.2% last month from 51.9% in October. Readings over 50% indicate more companies are expanding instead of shrinking. The November PMI reading from Markit also improved to 54.1 from 53.4 in the prior month.

The Nasdaq was down 72.57 points or 1.36 percent to 5,251.11, S&P 500 dropped 7.73 points or 0.35 percent to 2,191.08, while the Dow Jones Industrial Average added 68.35 points or 0.36 percent to 19,191.93.

The Indian ADRs closed in red; Dr. Reddy’s Lab was down 0.68%, Tata Motors was down by 0.66%, HDFC Bank was down 0.59%, ICICI Bank was down 0.26% and Infosys was down 0.17%.


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