Advertisement
Markets

Stock Market Today: Stocks Can't Muster Second Day of Gains

Early gains gave way to deeper losses Thursday as unemployment-benefits claims were higher than expected, and as a 'skinny' stimulus bill was snuffed.

Early broad-market gains at Thursday's open weakened as the day went on before flipping to solid losses, especially in Big Tech.

The Labor Department reported 884,000 new unemployment-benefits claims for the week ending Sept. 5. That was worse than estimates of 850,000, and continuing claims ticked higher.

"One week's worth of data does not make a trend and we hesitate to place too much weight on any one observation," writes Michael Gapen. Chief US Economist at Barclays Investment Bank, "however, the claims data this week suggest less momentum in labor market conditions in late August and early September.

Advertisement - Article continues below

"That said, the longer-term trends in initial and continuing claims remain positive and consistent with an economy that has maintained momentum well into the third quarter."

Also, Republicans' "skinny" COVID-19 relief bill failed to advance from the Senate, clipping the likelihood of any sort of stimulus before Election Day.

The Nasdaq Composite dropped by 2.0% to 10,919, weighed by significant declines in Apple (AAPL, -3.3%) and Microsoft (MSFT, -2.8%).

Other action in the stock market today:

  • The Dow Jones Industrial Average closed 1.5% lower to 27,534.
  • The S&P 500 finished down 1.8% to 3,339.
  • The small-cap Russell 2000 lost slightly less, declining 1.2% to 1,507.
  • Peloton (PTON) was up 3% in early after-hours action after the fitness-tech company reported its first quarterly profit as a publicly traded company, and said that its fiscal 2020 revenues and subscribers nearly doubled.
  • Online pet-product retailer Chewy (CHWY) was up 2% in early after-hours trading after announcing 47% year-over-year sales growth for its second quarter, and a net loss of $32.8 million that was 60% thinner than last year.

Keep Your Eyes Peeled for Bargains

The stock market continues to grasp for direction as mixed signals abound.

In addition to slowing jobs data, Brad McMillan, Chief Investment Officer for Commonwealth Financial Network, also points to declines in consumer spending and consumer confidence readings, but also offers up that COVID-19 data has been improving.

Advertisement - Article continues below

"The economic risks are also real, and we do see some slowing in the recovery so far. That will need to be watched," he says. "But, at the moment, the recovery continues, and there is a real possibility it will accelerate again if the medical risks remain constrained or, especially, if another federal income support program is passed.

"The risks are real, but so are the opportunities."

As we mentioned yesterday, those opportunities may include bargains on days like this –especially stocks already trading at value prices that are getting even cheaper. Dips are "double bonuses" for income stocks such as the Dividend Aristocrats – those S&P 500 stocks that have raised payouts for more than a quarter-century – as they provide improvements in both valuation and in yield.

At the moment, however, more than a dozen of these elite dividend growers are trading at attractive discounts, with some priced lower than their peers, lower than their historical averages or, in some cases, both. Read on to discover which Dividend Aristocrats look particularly cheap at present.

Kyle Woodley was long MSFT as of this writing.
Advertisement
Advertisement

Most Popular

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020
Where You Should Invest Now
investing

Where You Should Invest Now

Kiplinger.com senior investing editor Kyle Woodley joins our Your Money's Worth podcast to answer investor questions about tech stocks, the election a…
September 22, 2020

Recommended

Stock Market Today: Stocks Step Back Amid Economic Gloom
Markets

Stock Market Today: Stocks Step Back Amid Economic Gloom

The market gave up its early momentum to finish lower after a disappointing business report and the ongoing impasse in D.C.
September 23, 2020
Stock Market Today 9/22/20: Tech Stocks on Top Again as Fed Seeks a Helping Hand
Markets

Stock Market Today 9/22/20: Tech Stocks on Top Again as Fed Seeks a Helping Hand

Amazon.com (AMZN), as well as a healthy swath of tech stocks, pushed ahead Tuesday as the Fed appealed for fiscal help and Europe's COVID situation wo…
September 22, 2020
13 Best Warren Buffett Growth Stocks
stocks

13 Best Warren Buffett Growth Stocks

Warren Buffett might be known as a legendary value investor, but don't ignore his growth holdings. Here, we examine 13 of "the Oracle's" best growth s…
September 22, 2020
Stock Market Today 9/21/20: Bulls Retreat in Face of Growing Political, Health Risks
Markets

Stock Market Today 9/21/20: Bulls Retreat in Face of Growing Political, Health Risks

Ruth Bader Ginsburg's death and worrying COVID-19 numbers in Europe added additional downward pressure on stocks Monday.
September 21, 2020