By Joy Wiltermuth and William Watts
See: Melvin Capital’s liquidation may have been the mystery catalyst behind Wednesday’s plunge in stocks
In U.S. economic data Thursday, first-time claims for unemployment benefits rose 21,000 last week to 218,000. The Philadelphia Federal Reserve’s regional manufacturing index dropped sharply to 2.6 in May, a two-year low, from 17.6 a month earlier.
Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the National Association of Realtors said Thursday. Compared with April 2021, home sales were down 5.9%. Economists polled by The Wall Street Journal had expected a decrease to 5.64 million units.
Companies in focus
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Shares of Harley-Davidson Inc. /zigman2/quotes/207565294/composite HOG +3.58% tumbled 9.3% Thursday, after the motorcycle maker said it would suspend all assembly and shipments for two weeks.
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Tesla Inc. /zigman2/quotes/203558040/composite TSLA +1.47% shares edged 0.1% lower after Wedbush analyst Dan Ives slashed his price target by 29%, citing “hard to ignore” headwinds in China, as COVID-related lockdowns have reduced demand. Ives reiterated the outperform rating he’s had on the electric vehicle maker since April 2021 but cut his price target to $1,000 from $1,400.
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Cisco Systems Inc. /zigman2/quotes/209509471/composite CSCO -0.06% shares fell 13.7% to lead Dow decliners after the network-equipment maker logged third-quarter revenue below analysts’ expectations and guided for lower fourth-quarter and fiscal 2022 revenue .
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Further proving it wasn’t all gloom for the retail sector, shares of BJ’s Wholesale Club Holdings Inc. /zigman2/quotes/203668982/composite BJ +0.30% jumped 7.4% after the membership-based warehouse retailer reported fiscal first-quarter profit, revenue and same-store sales that rose above expectations .
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Spirit Airlines Inc. /zigman2/quotes/205782179/composite SAVE +2.21% on Thursday said its board has unanimously determined that JetBlue Airways Corp.’s /zigman2/quotes/207639051/composite JBLU +0.27% $30-a-share cash offer isn’t in the best interest of the airline and its shareholders, urging the latter to reject the tender launched by JetBlue earlier this week. Spirit had already reiterated earlier in May its support for the merger deal with Frontier Group Holdings Inc. /zigman2/quotes/211317788/composite ULCC -0.86% , that it had agreed before JetBlue made its offer. Spirit share fell 1.7%, while JetBlue shares rose 3.3% and Frontier gained 0.4%.
What other assets did
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The yield on the 10-year Treasury note /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -0.18% fell 3 basis points to 2.854%. Yields and debt prices move opposite each other.
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The ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY -0.08% dropped 0.9%.
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Bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.30% was up 2.9% near $30,000.
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Oil futures rose, with the U.S. benchmark /zigman2/quotes/211629951/delayed CL.1 -0.04% closing up 2.7% at $109.89 a barrel. Gold futures /zigman2/quotes/210034565/delayed GC00 +0.10% closed up 1.3% to settle at $1,841.20 an ounce.
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The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.19% closed down 1.4%, while London’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.05% dropped 1.8%.
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The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.08% rose 0.4%, while the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.80% dropped 2.5% in Hong Kong and Japan’s Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +0.10% shed 1.9%.
—-Steve Goldstein contributed reporting
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