Stocks opened modestly higher Thursday but two of the three indexes were in the red by lunchtime as mega-cap chipmaker Nvidia (NVDA) swung lower.
Starting with today's economic news. Data from the Labor Department showed that initial jobless claims fell by 5,000 last week to 238,00, more than economists expected.
Separately, the Census Bureau said housing starts fell 5.5% in May to 1.277 million units, the lowest level since June 2020. Building permits, which are an indicator of future construction, also fell to a nearly four-year low, sinking 3.8% to 1.386 million.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Economic indicators for the second quarter largely point to another slow quarter of economic activity, including weak retail sales, housing starts and building permits," says Bill Adams, chief economist for Comerica Bank. The soft economic activity and labor market data reinforce expectations for the Fed to begin cutting interest rates in a few months, he adds.
Kroger drops despite earnings beat
Checking out the earnings calendar, Kroger (KR) fell 3.3% after the grocery chain's CEO said he expects customers to continue "managing economic uncertainty" in the near term. Still, the company beat on the top and bottom lines for its fiscal first quarter.
Aron Bohlig, managing partner at ComCap, a boutique investment bank that works with several consumer-facing businesses, says this beat is partially due to Kroger's "significant investments in retail media which drive personalized advertisements at the point of decision," as well as its focus on supply chain optimization.
"The impact of these initiatives can be hard to project on a quarterly basis, but we are optimistic that they'll have more upside surprises for the next year or two," Bohlig adds.
Darden hikes its dividend again
Elsewhere, Darden Restaurants (DRI) rose 1.5% after the Olive Garden parent reported higher-than-expected fiscal fourth-quarter earnings, even as revenue fell just shy of estimates. The company also hiked its quarterly dividend by 6.9%, the fourth straight year it has done so.
Nvidia pulls back
Meanwhile, Nvidia was up more than 3% in intraday trading Thursday on news the chipmaker's partners Dell Technologies (DELL, -0.4%) and Super Micro Computer (SMCI, -0.3%) received server orders for Elon Musk's artificial intelligence (AI) startup xAI. However, NVDA shares finished the session down 3.5%.
Nvidia temporarily surpassed Microsoft (MSFT, -0.1%) earlier this week to become the most valuable publicly traded company in the world. However, thanks to today's downside, MSFT is once again in the top spot with a market cap of $3.31 trillion vs NVDA's $3.22 trillion.
Nvidia's weakness weighed on two of the three main indexes, with the Nasdaq Composite finishing the day down 0.8% at 17,721 and the S&P 500 slipping 0.3% to 5,473. The Dow Jones Industrial Average closed up 0.8% at 39,134 on strength in Salesforce (CRM, +4.3%).
Related content
- What Chipotle Stock's 50-for-1 Split Means for Investors
- Adobe Sued By FTC Over Hidden Fees, Cancellation Issues
- Stock Market Trading Hours: What Time Is the Stock Market Open Today?
-
RFK Jr. Now Heads HHS: How Medicare and Your Retirement May ChangeRobert F. Kennedy, Jr. was confirmed today to head up Medicare. Here are five ways his leadership might change your retirement.
-
Are Thousands of Armed IRS Agents Headed to the U.S.-Mexico Border?IRS Enforcement The Trump administration is considering a controversial move to redeploy some IRS agents.
-
The Trade Desk Stock Plunges on Soft Revenue, Weak OutlookThe Trade Desk stock is plunging Thursday after the advertising platform missed fourth-quarter revenue expectations and issued weak first-quarter guidance.
-
Reddit Stock Falls After User Number DisappointsReddit stock is down Thursday after the social media platform fell short of expectations on a key metric for its fourth quarter. Here's what you need to know.
-
Why Robinhood Stock Is Soaring After EarningsRobinhood stock is sizzling Thursday after the online trading platform reported impressive fourth-quarter results. Here's what investors need to know.
-
Heirs Inheriting Crypto? Don't Make It a Headache for ThemIf you have cryptocurrency in your estate, you'll need meticulous plans and clear instructions to ensure beneficiaries don't lose out after you're gone.
-
DIY Retirement Planning: A Smart Move or a Risky Endeavor?You can cut the cost of retirement planning by doing it yourself. But for something this important, it might be wiser to call in the professionals.
-
Galentine's Day: A Time to Promote Financial Literacy Among FriendsHere are three things women can do to help their friends gain financial knowledge and confidence.
-
Stock Market Today: Markets Turn Lower on Nasty Inflation SurpriseEquities sold off after a hot reading on consumer price inflation pushed back rate cuts to autumn or year-end.
-
CPI Report Puts the Kibosh on Rate Cuts: What the Experts Are Saying About InflationCPI Consumer price inflation reared its ugly head to start the year, dashing hopes for the Fed to lower borrowing costs anytime soon.
