Stocks tank in whipsaw session, Dow off 314 points

Jobless claims hit a 3-month high of 286,000

U.S. stocks turned lower across the board in the final hour of a choppy session. 

The Nasdaq Composite fell 1.3% deeper into correction territory, while the S&P 500 dipped 1.1% as discretionary and material companies fell. The Dow Jones Industrial Average fell over 314 points or 0.9%

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 32939.11 +301.92 +0.93%
SP500 S&P 500 4122.25 +64.41 +1.59%
I:COMP NASDAQ COMPOSITE INDEX 12007.074551 +266.42 +2.27%

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Weekly jobless claims.  unexpectedly rose to 286,000 above the 220,000 estimate, continuing claims, which track the total number of unemployed workers collecting benefits, also rose to 1.635 million.

UNITED POSTS $646M LOSS AS OMICRON CASTS SHADOW

Peloton shares got pummeled on reports the fitness tech company is pausing production on bikes and treads due to falling demand and higher costs, as reported by CNBC citing the review of internal documents. 

The company has not responded to FOX Business' request for comment. 

Ticker Security Last Change Change %
PTON PELOTON INTERACTIVE INC. 13.99 +0.10 +0.68%

In tech, chipmakers paced the bulk of the declines with Micron, Nvidia and Qualcomm losing ground. 

Ticker Security Last Change Change %
MU MICRON TECHNOLOGY INC. 70.60 +2.73 +4.02%
NVDA NVIDIA CORP. 178.51 +8.76 +5.16%
QCOM QUALCOMM INC. 134.84 +3.61 +2.75%

In earnings, Travelers shares rose after posting record quarterly profits pushing shares to an all-time high. 

Ticker Security Last Change Change %
TRV THE TRAVELERS COS. INC. 174.87 +1.28 +0.74%
FITB FIFTH THIRD BANCORP 38.61 +1.17 +3.12%
KEY KEYCORP 19.92 +0.40 +2.05%

American Airlines is also out with results, posting a loss of $921 million, or $1.42 per share, less than expectations. "Looking forward, our focus in 2022 will be to continue running a reliable airline, returning to profitability, and delivering on our long-term plan to deleverage the balance sheet," said incoming CEO Robert Isom. 

Ticker Security Last Change Change %
AAL AMERICAN AIRLINES GROUP INC. 17.24 +1.11 +6.88%
UAL UNITED AIRLINES HOLDINGS INC. 46.07 +2.99 +6.94%
DAL DELTA AIR LINES INC. 40.83 +2.23 +5.78%

Separately United Airlines cut its 2022 capacity forecast citing omicron and sees a drop of as much as 18% in the first quarter. 

 Union Pacific also posted solid results as it shipped more products in the pandemic rebound and over the holidays. Profits jumped nearly 24% while revenue rose to $5.7 billion ahead of the $5.1 billion in the year-ago period. 

Ticker Security Last Change Change %
UNP UNION PACIFIC CORP. 221.29 +3.87 +1.78%
CSX CSX CORP. 31.58 +0.43 +1.38%

In the afternoon, the spotlight will turn to Netflix.

Ticker Security Last Change Change %
NFLX NETFLIX INC. 191.40 +3.57 +1.90%

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In other economic news, the Philadelphia Federal Reserve index of manufacturing activity for eastern Pennsylvania, southern New Jersey and Delaware rose to a reading of 23.2 up from a one-year low of 15.4 in December. Any reading above zero means that more manufacturers say business conditions are improving rather than worsening.

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The National Association of Realtors is expected to say that sales of previously owned homes slipped 0.3% to a seasonally adjusted annual rate of 6.44 million units in December. That’s down from a 10-month high of 6.46 million in November. 

Asian stock markets rose Thursday after China cut interest rates to shore up economic growth and Japan reported a double-digit rise in exports.

The Nikkei 225 in Tokyo gained 1.1%, the Hang Seng in Hong Kong advanced 3.4% and China's Shanghai Composite Index was off 0.1%. 

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In energy markets, oil closed at $86.90 down fractionally. 

FOX Business' Ken Martin and The Associated Press contributed to this report.