US equity indexes experienced fluctuations after noon on Thursday following a stronger-than-expected reading on wholesale prices and an unexpected increase in jobless claims. The S&P 500 fell 0.2% to 6,070.6, while the Nasdaq Composite declined 0.3% to 19,968.3 and the Dow Jones Industrial Average decreased by 0.2% to 44,063.3.
Energy and materials sectors were the primary decliners, whereas real estate and consumer staples displayed resilience as top gainers. In November, the US producer price index rose by 0.4% month-over-month on a seasonally adjusted basis, exceeding the Bloomberg-poll consensus estimate of 0.2%. The previous month’s reading was upwardly revised to 0.3%.
On a year-over-year basis, producer prices witnessed a rise of 3% in November, surpassing the anticipated 2.6% increase. In a related economic update, initial jobless claims in the US ascended to 242,000 for the week ending December 7, compared to an upwardly revised figure of 225,000 for the preceding week, falling short of expectations that anticipated a drop to 220,000, as surveyed by Bloomberg.
The four-week moving average saw an increase of 5,750, reaching 224,250, after a rise the week before. On the Treasury bond front, yields displayed mixed results, with the 10-year yield up by 3.1 basis points to 4.3% and the two-year moving up marginally by less than one basis point to 4.15%. In contrast, yields on maturities of one year and below decreased.
Turning to company news, Warner Bros. Discovery announced its intention to implement a new corporate structure that will divide its operations into two distinct divisions: Global Linear Networks, which will concentrate on profitability and cash flow, and Streaming & Studios, aiming to accelerate growth through streaming and entertainment initiatives.
This announcement propelled shares up by 15% intraday, marking the highest performance within the S&P 500 and the Nasdaq. Conversely, Adobe shares plummeted by 12% intraday following the company’s fiscal Q1 revenue outlook and fiscal 2025 guidance, which fell short of market expectations. Additionally, West Texas Intermediate crude oil futures slipped 0.4%, settling at $69.99 a barrel..