WASHINGTON (dpa-AFX) - After once again failing to sustain an early upward
move, stocks came under pressure over the course of the trading session on
Thursday. The major averages pulled back well off their highs of the session,
with the Nasdaq and the S&P 500 ending the day in negative territory.

Reflecting weakness in the tech sector, the Nasdaq slid 81.87 points or 0.5
percent to 15,601.50, while the S&P 500 dipped 11.09 points or 0.2 percent to
5,011.12. The narrower Dow bucked the downtrend, inching up 22.07 points or 0.1
percent to 37,775.38

With the downturn on the day, the Nasdaq and the S&P 500 extended their losing
streaks to five days, falling to their lowest closing levels in almost two
months.

The early strength on Wall Street partly reflected bargain hunting, as traders
looked to pick up stocks at relatively reduced levels following recent weakness.

However, as with other recent rebound attempts, buying interest waned over the
course of the session amid ongoing concerns about the outlook for interest
rates.

Potentially adding to the interest rate worries, the Philadelphia Federal
Reserve released a report showing a considerable acceleration in the pace of
growth in regional manufacturing activity in the month of April.

The Philly Fed said its diffusion index for current general activity jumped to
15.5 in April from 3.2 in March, with a positive reading indicating growth.
Economists had expected the index to edge down to 1.5.

Notably, the report also said the prices paid index surged to 23.0 in April from
3.7 in May, reaching its highest reading since December 2023.

Quincy Krosby, Chief Global Strategist for LPL Financial, said the spike by the
prices paid index supports 'the Fed's concerns regarding inflationary pressures
stalling in its downward trajectory.'

The Labor Department also released a report showing first-time claims for U.S.
unemployment benefits remained flat in the week ended April 13th.

The report said initial jobless claims came in at 212,000, unchanged from the
previous week's revised level. Economists had expected jobless claims to rise to
215,000 from the 211,000 originally reported for the previous week.

'Jobless claims remain well below levels that would signal a major slowdown in
job growth,' said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.

She added, 'A strong labor market gives the Federal Reserve the room to put off
rate cuts until inflation gets back on a sustainable path to 2%.'

Meanwhile, the National Association of Realtors released a report showing a
sharp pullback by existing home sales in the U.S. in the month March.

NAR said existing home sales plunged by 4.3 percent to an annual rate of 4.19
million in March after surging by 9.5 percent to a rate of 4.38 million in
February. Economists had expected existing home sales to slump to a rate of 4.20
million.

Sector News

Semiconductor stocks came under pressure over the course of the session,
dragging the Philadelphia Semiconductor Index down by 1.7 percent to its lowest
closing level in almost two months.

U.S.-listed shares of Taiwan Semiconductor Manufacturing (TSM) have tumbled by
4.9 percent even though the chipmaker reported better than expected first
quarter results.

Considerable weakness also emerged among biotechnology stocks, with the NYSE
Arca Biotechnology Index falling by 1.6 percent to its lowest closing level in
well over four months.

Software, computer hardware and oil producer stocks also moved to the downside
on the day, while significant strength remained visible among airline stocks.

Alaska Air (ALK) soared by 4.0 percent after reporting a narrower than expected
first quarter loss on revenues that exceeded analyst estimates.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly
higher on Thursday. China's Shanghai Composite Index inched up by 0.1 percent
and Japan's Nikkei 225 Index rose by 0.3 percent, while South Korea's Kospi
surged by 2.0 percent.

The major European markets also moved to the upside on the day. While the French
CAC 40 Index climbed by 0.5 percent, the U.K.'s FTSE 100 Index and the German
DAX Index both rose by 0.4 percent.

In the bond market, treasuries once again came under pressure following the
rebound seen in the previous session. Subsequently, the yield on the benchmark
ten-year note, which moves opposite of its price, jumped 6.2 basis points to
4.647 percent

Looking Ahead

Amid a lack of major U.S. economic news, the reaction to the latest corporate
earnings news may drive trading on Friday.

Streaming giant Netflix (NFLX) is among the companies releasing their quarterly
results after the close of today's trading, while credit card giant America
Express (AXP) is among the companies due to report their results before the
start of trading on Friday.



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