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Stocks tumble after GDP, jobs data

Stocks tumble after GDP, jobs data

Stocks are sharply lower in early trading Thursday, despite more signs that the economy might be stabilizing.
Investors are putting the brakes on the market's recent rally, which gave the Dow Jones industrials seven straight days of gains through Wednesday, hitting another high for the year and matching its longest winning streak since July.
The Dow fell 70.21, or 0.7 percent, to 9,473.31. The Standard & Poor's 500 index fell 10.58, or 1.0 percent, to 1,017.54, while the Nasdaq composite index fell 27.87, or 1.4 percent, to 1,996.56.
Analysts say the market has been running out of reasons to move higher and is now looking for more convincing signs of recovery in the economy before resuming its upward march.
The latest report on unemployment benefits failed to excite investors. The Labor Department reported before the market opened that first-time jobless claims fell 10,000 last week to 570,000, just shy of economists' expectations for 565,000.
Workers continuing to file for benefits, however, fell more than expected, declining to 6.13 million from 6.25 million in the previous week. It was the lowest level for continuing claims since early April. Economists had been expecting claims to total 6.2 million.
Meanwhile, a Commerce Department report showed the nation's economy shrank at a 1 percent annualized rate in the second quarter. The updated figure was unchanged from an earlier, preliminary reading on the nation's GDP, which measures the value of all goods and services produced within the U.S. Economists had been predicting the figure would be revised lower to a 1.5 percent decline.
Trading has been erratic over the past week, even amid data showing improvements in housing and consumer confidence. Investors are worried about extending the market's impressive spring and summer rally without signs of actual economic growth.
About four stocks fell for every one that rose on the New York Stock Exchange, where volume came to a light 132.8 million shares, down from 167.6 million at the same time on Wednesday. With many traders on vacation, trading volume has been extremely light over the past week and is expected to remain so through the end of the summer. Light volume can add to the market's choppiness.
In other trading, the Russell 2000 index of smaller companies fell 10.50, or 1.8 percent, to 573.52.
Luxury homebuilder Toll Brothers Inc. said Thursday it lost $472.3 million in its fiscal third quarter due to a tax-related allowance and a write-down. Toll Brothers would have been profitable had it not been for the charges. The company has said there are signs of improvements in some markets.
Shares dropped 80 cents, or 3.5 percent, to $22.34. Other homebuilders also fell sharply after recent gains. DR Horton Inc. tumbled nearly 6 percent, losing 82 cents to $12.97.
Overseas, Asian stocks fell after China said it would cut excessive investment in some industries. Japan's Nikkei stock average lost 1.6 percent, while China's main index fell 0.7 percent.
In afternoon trading, Britain's FTSE 100 dipped 0.1 percent, Germany's DAX index fell 0.5 percent, and France's CAC-40 fell 0.2 percent.


Updated : 2021-05-17 06:47 GMT+08:00