Stocks ended lower Thursday, following on a sharp fall Wednesday, in the wake of the Federal Reserve's confirmation that interest rates would probably not be cut this year.
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The energy sector led the market lower as crude oil prices tumbled again to the lowest level in a month, after a jump U.S. crude inventories this week relieved fears of supply cuts resulting from President Trump's move earlier to restrict Iranian exports further.
“When the U.S. crude-oil warehouses bulge to their highest levels since September 2017, while production continues to set new high-water marks, warning signals should be flashing red,” said Stephen Innes, head of trading at SPI Asset Management.
First quarter corporate earnings are still the main focus this week, ahead of the monthly Labor Department payrolls and unemployment data Friday.
U.S.-China trade talks are also a concern with reports suggesting a deal may be announced possibly next week.
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Caterpillar announced a dividend increase of 20 percent to $1.03 a share.
Tesla shares were higher after announcing it would raise $2 billion in new capital.
Starbucks said it is voluntarily recalling more than 260,000 Bodum coffee presses in the U.S and Canada after receiving nine reports of users being injured after the plunger’s knob broke.
Beyond Meat, which launched its initial public offering Thursday, saw its stock soar 170 percent to above to around $67 from its IPO price of $25 per share. Beyond offers meat alternatives ranging from faux ground beef to burger patties.
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Factory orders rose in March after declining in the previous two months, the Commerce Department reported Thursday.
But automakers reported U.S. sales tumbled 6.1 percent in April, the biggest monthly drop since May 2011 to just 16.4 million units, the lowest since October 2014.
The number of people who applied for jobless benefits last week remained at a three-month high of 230,000 for the second week, though the recent increase in new claims is likely inflated by the recent Easter holiday and spring break.
U.S. Treasury yields rose Thursday after the Fed's decision on interest rates late Tuesday. The benchmark 10-year yield traded higher at 2.54 percent while the 2-year rate rose to 2.33 percent.
U.S. crude oil prices fell to their lowest level in a month as record U.S. crude production and rising inventories offset concerns over the potential for tighter global supplies in the wake of the expiration of U.S. waivers on Iranian oil sanctions.
The U.S. Energy Information Agency on Wednesday reported a 9.9 million rise in domestic crude supplies in the latest week, the biggest weekly climb of the year and also said U.S. crude production edged up to a record 12.3 million barrels a day.
U.S. West Texas Intermediate crude fell 3 percent to end at $61.81 a barrel.