Wall Street opens lower: S&P 500 down 0.80%, Nasdaq 100 down 1.56%

US stocks opened lower on Thursday, with the S&P 500 at 7695.07 at 10:00 in New York, down 0.80% from the previous close. The Nasdaq 100 fell 1.56% to 29358.67 in the same period.

What happened

The S&P 500 was down 62.1 points from its previous close of 7757.17. The index stood at 7695.07 at 10:00 New York time, thirty minutes after the opening bell at 09:30.

The Nasdaq 100 lost 463.85 points to 29358.67. Its previous close was 29822.52. The index tracks 100 of the largest non-financial companies listed on the Nasdaq exchange, so it carries a heavy weight of technology and growth names.

The CBOE Volatility Index, a gauge of expected near-term swings in the S&P 500, stood at 17.95 intraday. That was 1.27 points, or 7.61%, above the previous close of 16.68. The VIX is derived from prices of S&P 500 options, so a higher level means option prices imply larger expected moves.

Jobless claims data

The weekly US jobless claims data were released at 12:30 UTC, before the New York open. Initial jobless claims for the week ended Oct 17 came in at 194K, against an estimate of 200K. The previous week showed 200K. Initial claims count people who file for unemployment benefits for the first time in a given week.

Continuing jobless claims for the week ended Oct 10 were 1728K, against an estimate of 1720K. The previous reading was 1703K. Continuing claims count people who still receive benefits after an initial claim, and they are reported with a one-week lag to the initial figure.

The four-week average of initial claims was 197.75K, against an estimate of 200K. The previous value was 198.75K. The average smooths out weekly swings in the series and is often used to read the underlying trend.

Earnings before the bell

Four companies reported results before the market opened. Blackstone posted earnings per share of 1.32 USD, against an estimate of 1.26 USD. Its revenue was 3.22 billion USD, against an estimate of 3.27 billion USD. Blackstone is a large alternative asset manager.

Comcast reported EPS of 1.07 USD, against an estimate of 0.99 USD. Revenue was 29.3 billion USD, against an estimate of 29.22 billion USD. The group operates in media, broadband and entertainment.

CBRE Group reported EPS of 2.05 USD, against an estimate of 1.96 USD. Its revenue was 11.52 billion USD, against an estimate of 11.81 billion USD. CBRE is a commercial real estate services company.

Allegion reported EPS of 2.6 USD, against an estimate of 2.5 USD. Revenue was 1.17 billion USD, against an estimate of 1.14 billion USD. Allegion makes security and access products.

Reading the moves across the screen

The three index readings tell a consistent story at 10:00. Both equity benchmarks were lower, and the measure of expected volatility was higher than at the previous close. The VIX at 17.95 compares with 16.68 at the last close.

The Nasdaq 100 fell by a larger percentage than the S&P 500, at 1.56% against 0.80%. The S&P 500 covers a broader set of US large companies across all sectors, including financials. The Nasdaq 100 excludes financial firms and is more concentrated in technology and related industries.

The corporate reports came from several sectors: asset management, media and telecommunications, real estate services and building security. The reports give a mixed picture on sales and a consistent one on per-share profit among these four names.

Why it matters

Weekly jobless claims are one of the most timely readings on the US labor market. They arrive every week, while many other labor indicators come monthly. Markets use them to follow how many people are losing jobs and how long they stay on benefits.

The initial claims level of 194K is lower than the 200K of the previous week. At the same time, continuing claims rose to 1728K from 1703K. The two series measure different groups of people, and they can move in different directions in the same week. Initial claims reflect new layoffs. Continuing claims reflect how hard it is for people on benefits to find new work.

The four-week average of 197.75K is slightly lower than the previous 198.75K. This measure reduces the effect of one unusual week and gives a steadier view of the trend.

Labor market data matter for equities because they shape views on economic growth, corporate earnings and interest rates. A single session does not settle those views. The index moves at the open came alongside these figures and the corporate results, and the data do not show a single cause for the decline.

The VIX is a market-implied measure and says nothing certain about where the S&P 500 goes next. Its increase of 7.61% shows that the cost of S&P 500 option protection implied larger swings than at the previous close.

Earnings season adds company-level detail to the macro picture. Revenue and profit figures show how demand and costs are developing in specific industries. Results from asset management, media, real estate services and security products give a cross-section of the US corporate sector.

What to watch next

The session runs until 16:00 New York time. The 10:00 levels are intraday and will change as trading continues. The previous closes of 7757.17 for the S&P 500 and 29822.52 for the Nasdaq 100 are the reference points for the daily change.

The VIX stood at 17.95 intraday, against a previous close of 16.68. Its level at the end of the session will show whether the rise held.

On the data side, the next weekly claims release will update the four-week average of 197.75K, the continuing claims level of 1728K and the initial claims figure of 194K. Market participants will also follow whether continuing claims keep rising from 1703K.

On the corporate side, further company reports will add to the earnings picture set by Blackstone, Comcast, CBRE Group and Allegion. Each new report gives a further data point on earnings per share and revenue across US sectors.