Stock market news today: US weekly jobless claims jump to 2021 levels

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US stocks dip after renewed banking concerns and rise in jobless claims

US stocks edged lower on Thursday after weekly jobless claims surged by 22,000 to 264,000, representing the highest level since October 2021.

The high jobless claims number came in ahead of economists estimates for 245,000, and it continues a recent trend of the unemployment claims ticking higher as more companies reduce their headcount and slowdown their hiring efforts.PacWest Bancorp said its deposit base shrunk by nearly 10% last week after a report said it was considering a sale. The troubled bank stock plunged by more than 20% and helped drag down the Regional Banking sector ETF by 2%.

Stocks also dipped despite further signs inflation is coming down. The April Producer Price Index rose just 0.2%, below expectations for a 0.3% rise. The PPI index fell to 2.3% year-over-year in April. That follows Wednesday's reading of the Consumer Price Index, which showed prices rose 4.9% last month, lower than economists' estimates.

Investors remain focused on earnings results after Disney reported a decline in streaming subscriptions to its Disney+ platform. The stock fell about 6%. So far 90% of S&P 500 companies have reported first-quarter earnings so far, with 77% of those companies beating profit estimates by a median of 8%.

 

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