Thomson Reuters
- US stocks dropped on Thursday as traders took in fresh economic data.
- Industrial production fell 0.6% in October, more than the expected 0.4% decline.
- Weekly jobless claims came in at 231,000, higher than the estimated 220,000.
US stocks declined on Thursday following fresh manufacturing and labor market data, as the strong rally over the course of the week hit pause.
Industrial production dropped 0.6% in October, more than the consensus estimate for a 0.4% decline. At the same time, September's reading was revised down to a 0.1% increase, from 0.3%. Those declines came amid the UAW strike, with automotive production in particular seeing a 10.3% plunge.
Earlier in the day, weekly jobless claims clocked in at 231,000, higher than the estimated 220,000. Continuing claims, meanwhile, rose to 1.865 million, above the 1.853 million expected.
"October's decline in industrial production was largely as expected, with the UAW strike driving a large decline in production of cars, trucks, and parts," Bill Adams, chief economist for Comerica Bank said in emailed comments Thursday. "More noteworthy, initial and continued jobless claims rose in the first half of November, even after striking UAW members returned to their jobs."
That data comes one day after markets saw the latest sign of cooling inflation, with the producer price index dropping by the most since April 2020. In October, the year-over-year reading hit 1.3%, lower than the 2.2% seen the prior month. The reading follows October consumer inflation data, which also showed prices rising at a slower rate during the month.
Here's where US indexes stood as the market closed at 4:00 p.m. on Thursday:
- S&P 500: 4,508.25, up 0.12%
- Dow Jones Industrial Average: 34,945.47, down 0.13% (-45.61 points)
- Nasdaq Composite: 14,113.67, up 0.07%
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- The Dow reversed its short-lived bearish death cross and flashed a bullish signal.
In commodities, bonds, and crypto:
- Oil prices tumbled, with West Texas Intermediate down nearly 5% to $73.08 a barrel. Brent crude, the international benchmark, moved lower 4.4% to $77.60 a barrel.
- Gold edged higher 1% to $1,984.50 per ounce.
- The 10-year Treasury yield moved lower eight basis points to hover at 4.453%.
- Bitcoin dropped 4% to $36,026.