Shares were little changed on Thursday morning as investors digested the latest economic data ahead of next week’s management shakeup at the Federal Reserve and GameStop (GME).
The S&P 500 (^GSPC) was up 0.06%, the Nasdaq Composite Index (^IXIC) was up 0.14% and the Dow Jones Industrial Average (^DJI) was near the flat line at the market’s opening.
The Nasdaq 100 ended a four-day winning streak Wednesday as the artificial intelligence-powered bull market stalled. The S&P 500 Index has been chasing bull market territory all week and needs to close above 4,292.44 to formally mark a 20% gain for the index from its October 2022 low.
In terms of individual stocks, popular meme stock GameStop reported its first-quarter earnings, announcing the dismissal of CEO Matthew Furlong as part of that. GameStop Chairman of the Board Ryan Cohen has been appointed Executive Chairman. GameStop’s first quarter financials were worse than Wall Street had hoped, with revenue of $1.24 billion falling short of analyst estimates of $1.4 billion.
The company didn’t hold an earnings call, which is usually the industry standard, to discuss its quarterly earnings and management turnover. The company’s stock fell nearly 20% at the market’s opening on Thursday.
Wedbush managing director Michael Pachter said in a note to customers on Thursday that “the decline in physical software sales and the shift in sales to subscription services and digital downloads is driving GameStop’s growth.” We remain convinced that fate is sealed,” he wrote in a client memo. “While we believe there may be some value in running this chain for profit, we do not believe that a turnaround is imminent without a competent management team. “
On the economy side, 261,000 unemployment claims were filed in the week ending June 3, according to new Labor Department data. Economists surveyed by Bloomberg had expected 235,000 applications. Thursday’s report showed insurance claims increased from the previous week’s 233,000.
While not considered a key indicator in the Fed’s decision-making on a weekly basis, this week’s unemployment claims are one of the Fed’s final economic indicators ahead of the Federal Open Market Committee’s meeting next Tuesday. Become. As of Thursday morning, the market priced in a 65% chance that the Fed would pause its historic rate hike campaign at its meeting. By CME FedWatch tool.
Josh is a reporter for Yahoo Finance.
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