The Dow Jones Industrial Average and other major indexes closed below the 200-day moving average Thursday. The blue chip index met resistance at the 50-day moving average on Monday and was down 1.7%. Initial U.S. unemployment claims rose more than expected. February jobs numbers will be released early Friday.
The number of Americans filing new claims for unemployment benefits increased by the most in five months last week, but the underlying trend remained consistent with a tight labor market.
Vidya Ramakrishnan for Investor’s Business Daily:
Apple pared back early gains and fell 1.4%. The tech titan got yet another analyst upgrade on Thursday. Intel was the only gainer in the Dow Thursday. JPMorgan Chase and Walgreens dragged the index the most.
The S&P 500 fell nearly 1.9% and the Nasdaq was off by more than 2%. Both closed near session lows.
Jobless claims rose more than expected, to 211,000 for the week ended March 4, up from 190,000 the prior week. According to Comerica Chief Economist Bill Adams, the warmer winter this year boosted hiring. That may now begin to fade, showing that “the labor market is past maximum tightness.”
Wedbush analyst Dan Ives was the latest to join a growing group of analysts turning bullish on tech leader Apple. Ives increased his price target from 180 to 190 for the Cupertino, Calif., electronics giant. Earlier, Goldman Sachs’ Michael Ng showed confidence for a 199 goal and initiated with a buy rating, while Morgan Stanley analyst Erik Woodring saw the stock hitting 180 due to a spike in iPhone subscription volume.
MacDailyNews Take: The interest rate hikes shall continue until unemployment rises.
The Fed ludicrously went to a 25-basis point interest rate way too soon. They should have hiked interest rates by 50-basis points in early February and they should do a hike of 50-basis points at its next FOMC Meeting in March (21-23). – MacDailyNews, February 24, 2023
Again, when certain quarters, including the Fed, delude themselves and others that “inflation is transitory” and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.
Catching up will be difficult. But, hey, good luck on that soft landing. 🙄 – MacDailyNews, September 13, 2022
In January, Interactive Brokers founder Thomas Peterffy said of the U.S. Federal Reserve, “If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
The federal funds rate is currently 4.50% to 4.75%.
Peterffy may have been too conservative. Rates in excess of 6% may be required at this point. – MacDailyNews, October 13, 2022
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
*Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
