Dow Falls on Weak Unemployment Report, Mixed Earnings Results

Dow Jones DJIAThe SPDR Dow Jones Industrial Average ETF (NYSE:DIA) opened lower this morning, hurt by worse-than-expected unemployment data and mixed earnings results from several big-name companies.

Unemployment Claims Rise 14,000 from Last Week

Seasonally adjusted jobless claims rose to 266K new claims, up 14K from last week. Analysts had expected lower claims of 260K. The Department of Labor said:

In the week ending July 23, the advance figure for seasonally adjusted initial claims was 266,000, an increase of 14,000 from the previous week’s revised level. The previous week’s level was revised down by 1,000 from 253,000 to 252,000. The 4-week moving average was 256,500, a decrease of 1,000 from the previous week’s revised average. The previous week’s average was revised down by 250 from 257,750 to 257,500.

There were no special factors impacting this week’s initial claims. This marks 73 consecutive weeks of initial claims below 300,000, the longest streak since 1973. [See full report]

On a positive note, this week marked the 73rd consecutive week under 300K jobless claims, which is the longest streak since 1973.

Lackluster Earnings Pulling Some Dow Stocks Down

None of the Dow 30 stocks reported earnings today, but mixed results from many of their famous peers have the index in the negative:

  • Ford is being hit hard, off 10% after its lackluster report this morning.
  • Bristol-Myers Squibb is down 2% after its report.
  • MasterCard is up 2% however, after positive results.
  • Celgene is also rising about 2% following its report.

The DIA, which directly tracks the Dow Jones Industrial Average, fell $0.19 (-0.10%) to $184.38 per share in Thursday morning trading.

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