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?
-
4 Things You Need to Know Before Applying for Social Security in 2025Don't unnecessarily delay or reduce your Social Security benefits because you don't know all the rules and requirements.
-
Will Utah Stop Taxing Social Security Benefits?Retirement Taxes Utah Gov. Spencer Cox wants to end the state's tax on Social Security income.
-
What's Better Than Investing in Crypto? These 'Boring' PicksCryptocurrency may be good for a thrill, but older investors are better off with assets like bonds, guaranteed annuities, CDs and maybe dividend-paying stocks.
-
Four Actions to Lessen Retirement Stress for Women (and Men)Saving for retirement is anxiety-inducing for everyone, especially women. Following this four-part action plan can help improve your financial security.
-
Year-End Retirement Tax Planning Actions if You Have $1 Million or MoreConsider implementing these four strategies before December 31 to potentially improve your tax situation for this year and the future.
-
Five Simple Strategies to Ensure a Happy RetirementEmployer retirement plans are great, but individual responsibility plays a huge role in retirement success. Here's how to empower yourself.
-
25 Financial Moves to Consider Before December 31Tidying up your financial house before the New Year kicks off will put you in a great position to have a financially satisfying and successful 2025.
-
Five Side Hustles You Could Turn Into a Full-Time BusinessYou might be able to capitalize on your expertise in ways you haven't thought of, possibly even leading to quitting your 9-to-5 job to do what you love.
-
Stock Market Today: Nasdaq Nabs New High After Jobs DataThe S&P 500 also closed at its highest level ever, while the Dow Jones Industrial Average was pressured by another down day for UnitedHealth stock.
-
Rebound in Jobs Growth Keeps Fed on Track: What the Experts Are SayingJobs Report No nasty surprises in the November payrolls data leaves a quarter-point cut in play.
