US open: Stocks in decline as jobless claims fall and Saudi Arabia cuts January prices to US

Markets were down on Thursday amid lower than expected Initial Jobless claims and reports that Saudi Arabia has slashed January prices to the US.

The Dow Jones Industrials dropped 0.16% early on to 17.883.69, while the S&P 500 fell 0.22% to 2,069.85 and Nasdaq decreased 0.13% to 4,768.43.

US initial jobless claims reduced to 297,000 in the week ending 29 November, resuming the downward trend in line with consensus expectations of 295,000.

Barclays Research noted: “This morning’s report brings initial claims back below the 300k level, and is consistent with our view that the recent uptick in volatility was at least partially due to seasonal factors from the timing of the Thanksgiving holiday. We look for further improvements in labor market separations as the recent volatility continues to dissipate from the data.”

Alpari market analyst Craig Erlam added that “continuing claims are expected to rise slightly from the multi-year lows they fell to last week”.

Earlier on Thursday, it was reported that Saudi Arabia has cut its January oil prices to the US and Asia.

West Texas Intermediate crude futures were falling early in the day by 1.4% to hit $66.47 a barrel after Wednesday’s mild increase and Brent crude futures were also falling by 0.85% to $69.33 a barrel.

Over on COMEX, gold futures were also dropping by 0.06% to $1,207.60. The dollar was advancing against the pound and the yen while declining against the euro.

Meanwhile in company news, oil and gas companies like Chevron and Exxon were declining as oil prices continue to tumble.

Visa, American Express, Microsoft and Walt Disney were advancing in the week following Thanksgiving.