The US markets closed lower on Thursday, as investors seemed reluctant to bid up prices of indexes that are already hovering near all-time highs. Market reaction to a raft of economic data ahead of the opening bell was muted, with investors reluctant to make big bets ahead of the holiday weekend. On the economy front, US jobless claims jumped to the highest level since mid-June. The Labor Department said jobless claims in the week ending December 17 rose a seasonally adjusted 21,000 to 275,000. The four-week average of claims, a less volatile indicator, rose by 6,000 to 263,750. Even with the increase, this marks 94 consecutive weeks of initial claims below 300,000, the longest streak since 1970. Continuing jobless claims in the week ending December 3 fell by nearly 79,000 to 2.04 million. These claims reflect the number of people already receiving unemployment checks. The Chicago Fed national activity index fell to negative 0.27 in November from an upwardly revised negative 0.05 in October. The index’s three-month moving average, which tends to offer a clearer picture of the trend in economic activity than the monthly reading alone, improved to negative 0.14 in November from an upwardly revised negative 0.20 in October. Consumer-spending growth in November slowed as incomes stagnated, and following several strong months of spending gains. The PCE price index, the favored inflation gauge of the Federal Reserve, rose 1.4% compared with a year ago.
On the other hand, the US economy grew faster than previously thought between July and September, its best performance in two years, buoyed by stronger consumer spending. The Commerce Department said the economy expanded at a seasonally adjusted 3.5% annualized rate in the third quarter. This is above the government’s prior estimate of 3.2% due to upward revisions in consumer spending and business investment. Consumer spending, which added 2 percentage points to GDP, rose at a 3% annual rate, up from the prior estimate of 2.8%. Business investments rose at a revised 1.4% rate, much stronger than the previous estimate of a 0.1% rise.
The Dow Jones Industrial Average lost 23.08 points or 0.12 percent to 19,918.88, Nasdaq was down 24.01 points or 0.44 percent to 5,447.42, while S&P 500 dropped 4.22 points or 0.19 percent to 2,260.96.
The Indian ADRs closed mostly in red; Dr. Reddy’s Lab was down 0.71%, Tata Motors was up 0.47%, Infosys was down 0.17% and Wipro was down 0.05%. On the other hand, HDFC Bank was up 0.27%.
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