U.S stocks were largely flat on Thursday following a strong day of gains as the market struggled for a direction after a big rally to start the year.
The S&P 500 dipped just 0.1%. The Dow Jones Industrial Average dipped 110 points, while the Nasdaq Composite traded around the flatline.
Shares of Southwest Airlines rose 1.6% after the carrier said leisure travel bookings continue to rise and that it expects to break even “or better” by June. Southwest also posted a narrower-than-expected loss for the first quarter.
American Airlines rallied 3% after the company said its cash flow turned positive by the end of the quarter, excluding debt payments.
The market remained little changed after a better-than-expected reading on weekly jobless claims. The Labor Department said Thursday that first-time claims for unemployment insurance totaled 547,000, which was below the Dow Jones estimate for 603,000.
Stocks rose on Wednesday during regular trading hours, snapping a two-day losing streak, as companies tied to the economy reopening led the way higher. The Dow advanced 316 points, or 0.93%, while the S&P 500 rose 0.93%. The Nasdaq Composite was the relative outperformer of the major indices, rallying 1.19%.
Small caps were a particular point of strength during the session, with the Russell 2000 ending the day 2.35% higher for its best day since March 1.
The Dow and S&P 500 are less than 1% away from reclaiming their record highs, reached last Friday, amid ongoing optimism over the pace of the economic recovery.
“Stocks continue to fire on almost ‘all cylinders’ and remain in a strong position as the bull expands across the cyclical, secular, and increasingly the defensive [sector] with an economy on the offensive,” noted strategists at Evercore ISI. “The sum of which in conjunction with rising metals and materials, a milquetoast dollar, and a 10-year at 1.55%, offers the technical definition of ‘Goldilocks’ as we consolidate the powerful rally atop key support,” the firm said.
A busy week of earnings season continued on Thursday with a host of companies set to report quarterly results. Intel, Snap, Mattel, Boston Beer and Seagate Technology will report after the market closes.
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