Same November Story in Thursday Trading
Wall Street posted mild losses in trading Thursday, with down beat economic news related to Hurricane Sandy and continued fiscal cliff concerns leading equities lower. The key is whether or not this market correction turns into something much more severe. I do not see that happening as I truly believe that we will see a rush of pent up demand post fiscal cliff resolution. The Dow Jones industrial average slipped 28.49 points, or 0.23 percent, to 12,542.46, closing lower for the fourth consecutive session. The Standard & Poor’s 500 Index lost 2.16 points, or 0.16 percent, to 1,353.33, with telecommunications leading 8 out of the 10 market sectors lower. The Nasdaq Composite Index was off 9.87 points, or 0.35 percent, to 2,836.94, also its fourth consecutive losing session.
Crude oil for December delivery fell 87 cents, or 1%, to settle at $85.45 a barrel on the New York Mercantile Exchange. We saw a broad based metals pullback as well. Gold dropped $16.30, or 0.9%, to $1,713.80 an ounce, while silver lost 21 cents, or 0.6%, to $32.67 an ounce.
Hurricane Sandy led the way for a massive 78,000 spike in weekly jobless claims for the week ending November 10th. Adding to the pressure is a 6,000 upward revision to the prior week to 361,000. The four-week average is up a very sizable 11,750 to a 383,750 level that is more than 15,000 above month-ago levels which does not point to improvement for November payroll growth or the unemployment rate. The Street will definitely be keeping an eye on the trend over the next few weeks. Things always get a little dicey during the holiday season in terms of claim filing, and I am not a big fan of the seasonal adjustments that the Labor Department does.