Stocks have moved back to the downside in early afternoon trading on Thursday, as continued anxiety regarding the labor market has the markets unable to shake off selling pressure. Nonetheless, the major averages are seeing only modest losses, continuing the week's choppy trading pattern.
Ahead of the opening bell, the Labor Department released a report showing a modest decrease in first-time claims for unemployment benefits in the week ended March 6th, although the report also showed an increase in continuing claims.
In a separate report, the Commerce Department said that the U.S. trade deficit unexpectedly narrowed in the month of January, with the value of imports falling at a faster rate than the value of exports.
In news from the embattled housing sector, RealtyTrac, an online marketplace for foreclosure properties, stated that foreclosure filings rose 6 percent in February compared to last year but declined 2 percent from the previous month. 0In corporate news, Devon Energy Corp. (DVN) said that it has entered into agreements to sell its assets in the deepwater Gulf of Mexico, Brazil and Azerbaijan to British oil giant BP plc (BP) for $7.0 billion.
The major averages are currently posting modest losses, well off the lows for the session set in early trading. The Dow is down 19.35 points or 0.2 percent at 10,547.98, the Nasdaq is down 6.61 points or 0.3 percent at 2,351.34 and the S&P 500 is down 3.68 points or 0.3 percent at 1,141.93.
Sector News
Biotechnology stocks are showing notable weakness, driving the NYSE Arca Biotechnology Index down by 1.3 percent. With the pullback, the index is falling from the historic closing high set yesterday.
InterMune (ITMN), which led the way higher in the sector yesterday amid news that a FDA panel recommended approval of its experimental lung disease treatment, is down by 5.8 percent. The stock is also pulling back off of yesterday's historic high.
Semiconductor, electronic storage and tobacco stocks are also under pressure, while healthcare provider stocks are bucking the downtrend. The Morgan Stanley Healthcare Provider Index is up by 0.7 percent and is at its best intraday level in nearly five months.
Banking, railroad and networking stocks are also moving higher, helping to limit the downside for the major averages.
Stocks In The News
Willbros Group Inc. (WG) is lower in early afternoon trade after the firm's fourth quarter loss came in wider than analysts had forecast. The stock has dipped by 11.5 percent, setting a four and a half month intraday low earlier.
Men's Wearhouse, Inc. (MW) is also under pressure after saying that it swung to a fourth quarter loss, hurt by lower sales and an asset impairment charge. However, the company's adjusted loss per share was narrower than what analysts had forecast. The stock has sunk by 3.7 percent, falling further from the four-month closing high set earlier this month.
On the other hand, EnergySolutions Inc. (ES) is on the rise after being chosen to provide nuclear waste management facilities for China Guangdong Nuclear Power Holding Corp. The stock has gained 4.2 percent, recovering from recent one-year lows.
In Focus: Economic News
As mentioned above, the Labor Department released a report showing that initial jobless claims for the week ended March 6th edged down to 462,000 from the previous week's revised figure of 468,000. Economists had expected jobless claims to slip to 460,000 from the 469,000 originally reported for the previous week.
Peter Boockvar, equity strategist for Miller Tabak, said, "Due to the noise around the snow storms, it's best to look at the 4-week average, which smoothes out the data."
The less volatile four-week moving average rose to 475,500 from the previous week's revised average of 470,500. With the increase, the moving average reached its highest level since late November of 2009.
At the same time, the report showed that continuing claims, a reading on the number of people receiving ongoing unemployment help, rose to 4.558 million in the week ended February 27th from the preceding week's revised level of 4.521 million.
In a separate report, the Commerce Department reported that the U.S. trade deficit narrowed to $37.3 billion in January from a revised $39.9 billion in December. The smaller deficit surprised economists, who had expected the deficit to widen to $41.0 billion from the $40.2 billion deficit originally reported for the previous month.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region closed mostly higher on Thursday. Japan's benchmark Nikkei 225 Index gained 1 percent, while Hong Kong's Hang Seng Index edged up by 0.1 percent.
Meanwhile, the major European markets ended the day moderately lower. The U.K.'s FTSE 100 Index and the French CAC 40 Index both fell by 0.4 percent, while the German DAX Index edged down by 0.1 percent.
In the bond markets, treasuries remain lower ahead the day's thirty-year bond auction. The yield on the benchmark ten-year note is trading at 3.748 percent, posting gain of 2.8 basis points.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.