US Stock Market Overview – Stocks Fall Led Lower by Real-Estate; Mortgate Rates Continue to Plunge

US stocks moved lower on Thursday, driven down by losses in the Dow and the Nasdaq. Most sectors in the S&P 500 index were lower, with Real-estate spearheading the losses. The Utility sector bucked the trend. Mortgage rates in the US dropped to the lowest level on record, below 3%. The dollar rebounded generating headwinds for commodities such as gold silver and oil. Retail sales came in higher than expected, while May business inventories dropped to the second-worst level since 1948. Jobless claims came in at 1,3-million which was higher than expected.  Morgan Stanely reported better than expected Q2 financial results driven by gains in trading as well as solid asset management fees.

Retail Sales Rise Which Should Buoy Q2 GDP

US retail sales rose more than expected according to the Commerce Department. The advanced retail sales rose 7.5% last month. That was on top of the 18.2% jump in May, which was the biggest gain since the government started tracking the series in 1992. Expectations had been for retail sales to rise by 5% in June. Additionally, May business inventories down 2.3%, second-worst number since 1948.

Jobless Claims Rise More Than Expected

The Labor Department reported that jobless claims came in at 1.3 million for the week ending July 11. Expectations had been for a rise of 1.25 million.  This was the  17th straight week in which initial claims totaled at least 1 million. Continuing claims which show people who have request claims for at least two straight weeks, totaled 17.33 million for the week of July 4. That reflects a drop of 422,000 from the previous week.

Morgan Stanley Beat on the Top and Bottom Line

Morgan Stanely reported better than expected financial results. The company generated record profit of $3.2 billion, or $1.96 a share including an 8 cent per share expense tied to taxes, exceeding the $1.12 estimate. Revenue climbed roughly 30% to a record $13.4 billion, a surprise increase that exceeded expectations by a full $3 billion.