US Stocks Market Overview – Stocks Drop Led Down by Technology

US stocks moved lower on Thursday following a larger than expected US jobless claims report. Sectors in the S&P 500 index were mixed, led lower by real-estate and technology. Consumer Staples and financials bucked the trend. US yields moved lower, weighing on the dollar which helped buoy gold prices to a 8-year high. Gold is poised to test the all-time highs at 1,921 which helped buoy the mining stocks. The US surpassed 4-million COVID-19 cases forcing President Trump to cancel the Florida portion of the Republican convention. After the closing bell Intel reported worse than expected guidance which weighed on the shares in the pre-market.

Intel Reports Soft Guidance

Intel released its financial results for the Q2 after the closing bell on Thursday. The company said that its gross margin, or the percentage of revenue left after subtracting the costs of goods sold, dropped to 53.3% in the period from 59.8% a year earlier. The company had expected its gross margin, which has long hovered around 60%, to come in at 56% for the second quarter. Earnings came in at $1.23 per share, versus $1.11 per share expected. Revenue came in at $19.73 billion, versus $18.55 billion expected.

Jobless Claim Rise More than Expected

Initial jobless claims came in at 1.416 million for the week ending July 18, according to the Labor Department. Expectations were for a rise to 1.3 million. It was the 18th straight week in which initial claims totaled more than 1 million, and it snapped a 15-week streak of declining initial claims. Continuing claims, which refer to those receiving benefits for at least two straight weeks, dropped by 1.107 million to 16.197 million for the week ending July 11.