Sector movers: Stocks trying to find their footing

8th Aug 2024 18:02

(Sharecast News) - Stocks ended a tad lower on Thursday, but well off their session lows after the release of better-than-expected weekly jobless claims figures in the US.

According to the US Department of Labor, initial unemployment claims fell by 17,000 over the week ending on 3 August to reach 233,000.

The data helped to allay fears that the US jobs market was rapidly deteriorating.

According to Nancy Vanden Houten, lead US economist at Oxford Economics, the high level of claims over the past few weeks was due to special factors, but the trend was drifting higher,

"[They] are consistent in our view with an unemployment rate that stays above 4%.

"The Fed is increasingly focused on the labor market side of its dual mandate, and we think a rate cut in September is all but assured, but we don't think the labor market is weak enough to warrant a 50bps cut."

"Investors are rapidly relearning the lesson that spikes in volatility do not immediately subside after the initial move," said

For his part, IG chief market analyst, Chris Beauchamp, chipped in saying: "Both buyers and sellers this week have had to endure wide swings in price action, which will no doubt come as a surprise after months of quieter trading. Stocks seem to have found a low for now, though it is still early days."

Autos&Parts paced gains on the FTSE 350 after the automotive components manufacturer reported first half profits that came in ahead of expectations.

Beazley and Morgan Sindall meanwhile provided a boost to their respective sectors, non-life insurance and Construction.

Tobacco also fared well amid ongoing strength in shares of British American Tobacco and Imperial Brands.

Shares in the former notched up a fresh 52-week high on Thursday.

Top performing sectors so far today

Automobiles & Parts 1,009.50 +3.60%

Non-life Insurance 3,593.79 +1.59%

Construction & Materials 11,570.72 +1.20%

Investment Banking and Brokerage Services 15,382.50 +0.60%

Tobacco 31,746.04 +0.55%

Bottom performing sectors so far today

Industrial Engineering 12,314.39 -3.74%

Industrial Transportation 3,878.34 -1.20%

Medical Equipment and Services 11,808.85 -1.19%

Telecommunications Service Providers 2,026.77 -1.04%

Real Estate Investment Trusts 2,311.56 -1.01%