The US markets closed mostly lower on Thursday, as large-cap names in the technology sector extended losses, but major indexes finished off of their intraday lows. A more hawkish tone from the Federal Reserve on Wednesday continued to contribute to the cautious mood, as did reports that a special counsel was investigating whether President Donald Trump obstructed justice, inserting a new bit of political uncertainty into markets. The Washington Post and the Wall Street Journal reported that special counsel Robert Mueller is investigating Trump’s conduct. The Journal said Trump’s firing of former FBI Director James Comey is now a subject of Mueller’s probe, which has expanded to include whether Trump obstructed justice.
On the economy front, the number of Americans applying for and receiving benefits after losing their jobs keeps going lower. Initial jobless claims fell by 8,000 to 237,000 in the seven days stretching from June 4 to June 10. The less-volatile four-week average of new claims rose by 1,000 to a still-low 243,000. In May the monthly average fell to a 44-year bottom. Initial claims reflect people who apply for benefits after losing their jobs. New applications for benefits have registered less than 300,000 for 119 straight weeks, the longest run since the early 1970s.
Separately, two gauges of manufacturing sentiment showed strength in June. The Philadelphia Fed manufacturing index in June retreated to a reading of 27.6 from 38.8 in May. The June reading was higher than the consensus forecast of 26 compiled by Econoday. The Empire State index, meanwhile, rebounded to a reading of 19.8 from negative 1 in May. This is the highest level in the index since September 2014.
The Dow Jones Industrial Average lost 14.66 points or 0.07 percent to 21,359.90, Nasdaq was down 29.39 points or 0.47 percent to 6,165.50, and S&P 500 edged lower by 5.46 points or 0.22 percent to 2,432.46.
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