cloudy.png
Wednesday September 22nd, 2021 10:48AM

Stocks move lower on Wall Street; AMC slumps on stock sale

By The Associated Press
Related Articles
  Contact Editor

Stocks mostly fell on Wall Street in afternoon trading Thursday as investors weighed the latest economic reports showing that unemployment claims are falling but labor costs are rising.

Markets have been wobbly all week as investors closely watch the labor markets for more signs of economic growth and consider any information that could give more clues about rising inflation. Labor costs rose at a 1.7% rate in the first quarter, up from the initial estimate that costs had fallen 0.3%. That could stoke more fears that inflation might run hotter than expected.

The S&P 500 index fell 0.3% as of 12:23 p.m. eastern. The Dow Jones Industrial Average rose 12 points, or less than 0.1%, to 34,609 points and the Nasdaq shed 1%.

The benchmark S&P 500 was roughly split between gainers and losers and the slide has erased its gains for the week. Technology companies, whose pricey stock values make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 0.9% and Intel slipped 2.%.

A variety of companies that rely on direct consumer spending and communications companies also had some of the biggest declines. Banks and energy companies rose.

Bond yields rose. The yield on the 10-year Treasury rose to 1.63% from 1.59% late Wednesday.

Rising inflation is expected as the economy recovers from the pandemic's impact, but the key question for many on Wall Street is whether it will be temporary or more permanent.

“The main concern in the markets, rightfully so, is inflation,” said Cliff Hodge, chief investment officer for Cornerstone Wealth. “Data points are beginning to confirm the view that inflation is likely to be more sticky.”

Wall Street will get more detailed data on the labor market Friday when the Labor Department releases its monthly jobs report. Economists are projecting that it will show employers added more than 650,000 jobs in May.

Expectations of a strong increase in hiring have stoked worries about inflation and how the Fed may respond to it. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.

Inflation worries are also butting up against the recovery seemingly shifting from a sharp rebound to a grind, which could mean more choppiness as the economy adjusts.

“When the rubber meets the road with the realities of reopening, we think we could be in for a rocky period,” Hodge said.

AMC Entertainment fell 24% after the movie theater operator said it would sell more shares following a huge run-up in its stock price on surge of interest from individual investors. The stock is still up about 2,000% this year.

General Motors jumped 6% after saying it expects earnings in the first half of the year to exceed its earlier forecasts as its efforts to manage a global computer chip shortage have worked better than expected.

European and Asian markets closed mixed.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Stocks move lower on Wall Street; AMC slumps on stock sale
Stocks mostly fell on Wall Street in afternoon trading Thursday as investors weighed the latest economic reports showing that unemployment is falling, but labor costs are rising
12:30PM ( 3 minutes ago )
Biden offers tax deal to Republicans in infrastructure talks
President Joe Biden is trying to break a logjam with Republicans on how to pay for infrastructure
12:28PM ( 6 minutes ago )
US service sector growth surges in May
Growth in the services sector, where most Americans work, hit an all-time high in May as people flock to bars, restaurants and other venues across the country that now have fewer or no capacity restrictions
12:25PM ( 8 minutes ago )
Associated Press (AP)
A year later, racial reckoning yields uncertainty in giving
One year ago, as protesters filled America’s streets demanding justice after George Floyd’s murder by police, corporations and major philanthropists pledged an outpouring of donations for racial equity causes
11:27AM ( 1 hour ago )
Jailed Belarus journalist: Mass protests have fizzled
A dissident journalist who was arrested after his plane was diverted to Belarus said in a video from prison that demonstrations against the country’s authoritarian leader had fizzled and the opposition should wait for a better moment to revive them
11:24AM ( 1 hour ago )
Crews remove barriers, memorials at George Floyd Square
Crews have removed concrete barriers, artwork, flowers and other items from a Minneapolis intersection that has been a sprawling memorial to George Floyd since his death last year
11:21AM ( 1 hour ago )
AP National News
Slow to start, China now vaccinating at a staggering pace
After a slow start, China is now doing what virtually no other country in the world can: leveraging the power and all-encompassing reach of its one-party system and a maturing domestic vaccine industry to administer shots at a staggering pace
9:26AM ( 3 hours ago )
Peruvians to pick new president amid relentless pandemic
Peruvians are set to pick a new president amid a relentless coronavirus pandemic that has even pushed cemeteries in the South American nation beyond capacity
9:25AM ( 3 hours ago )
US jobless claims drop to 385,000, another pandemic low
The number of Americans seeking unemployment benefits fell last week for a fifth straight week to a new pandemic low, the latest evidence that the U.S. job market is regaining its health as the economy further reopens
9:19AM ( 3 hours ago )
AP Online National News
Major Russian fund to ditch dollar, buy euros, yuan, gold
Russia says it will completely remove the dollar from its rainy day fund, a move intended to counter U.S. pressure two weeks before a summit of the two countries’ leaders
10:31AM ( 2 hours ago )
GM raises forecast, says chip shortage not as bad as feared
General Motors says efforts to manage the global computer chip shortage have worked better than expected, so it’s financial results will improve over previous forecasts
10:25AM ( 2 hours ago )
The Latest: California considers new workplace mask rules
California is set to fully reopen in less than two weeks and do away with nearly all mask and social distancing requirements for vaccinated people
10:12AM ( 2 hours ago )
AP Business
Biden tax proposal in focus at Group of 7 ministers' meeting
Finance ministers from the Group of Seven wealthy democracies have a lot to talk about when they gather in London starting Friday
9:27AM ( 3 hours ago )
The summer blockbuster is AMC stock; beware of plot twists
AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up almost 3,000% this year, and 140% just this week
9:14AM ( 3 hours ago )
The Latest: China gives shots at staggering pace in areas
After a slow start, China is administering shots at a staggering pace
8:19AM ( 4 hours ago )
AP Business - Economy
US stocks turn choppy on Wall Street; AMC soars again
Stocks wavered between small gains and losses Wednesday as gains in technology companies were kept in check by losses in industrial companies and other sectors
2:38PM ( 21 hours ago )
US stocks edge higher on Wall Street; AMC climbs again
Stocks edged higher Wednesday as gains in technology companies offset losses in industrial companies and other sectors
1:14PM ( 23 hours ago )
US stocks edge higher in early trading; AMC climbs again
Stocks edged higher Wednesday morning as gains in technology companies offset losses in banks, industrial companies and other sectors
10:21AM ( 1 day ago )
AP Business - Financial Markets
Talk of Trump 2024 run builds as legal pressure intensifies
Multiple people who have spoken with Donald Trump and his team in recent weeks say they sense a shift, with the former president increasingly acting and talking as though he plans to mount another White House bid
12:15PM ( 19 minutes ago )
13 on trial in Paris for cyberbullying, threats against teen
Thirteen people on trial in Paris are accused of cyberbullying or death threats against a teenage girl who posted comments online that contained comments critical of Islam
12:13PM ( 21 minutes ago )
Nonprofit EmbraceRace helps parents explain race to children
EmbraceRace was founded in 2016 by a couple who believe it is never too early to start conversations with children of all races about racism
12:04PM ( 29 minutes ago )
The Latest: Biden offers vaccines for global sharing program
President Joe Biden plans to share COVID-19 vaccines with the world, including directing 75% of excess doses through the UN-backed COVAX global vaccine sharing program
12:01PM ( 33 minutes ago )
AMC, this summer's blockbuster stock, warns of plot twists
AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up 2,000% this year, and 140% just this week
12:00PM ( 33 minutes ago )