* AT&T rises on strong results
* Southwest Airlines rises on smaller-than-expected loss
* U.S. weekly jobless claims decline further
* Indexes Down: Dow 0.44%, S&P 0.18%, Nasdaq 0.07%
(Updates prices to open)
By Shivani Kumaresan and Shreyashi Sanyal
April 22 (Reuters) - The S&P 500 and Dow Jones indexes edged
lower on Thursday as a resurgence of COVID-19 cases globally
sapped appetite for stocks, with data showing tepid U.S. home
sales adding to the grim mood.
Investor sentiment dulled in the first half hour of trading,
with eight of the 11 major S&P 500 sectors in the red.
American Airlines Group Inc AAL.O and Southwest Airlines
Co LUV.N reported a smaller-than-expected quarterly loss,
signaling a revival in travel demand. The performance of their
shares was mixed though, with Southwest rising 0.5% and American
Airlines falling 0.4%. "Even with better-than-expected results from airlines this
morning, at these elevated valuation levels, the market may have
some agita digesting the cross currents from negative virus
headlines," said Cliff Hodge, chief investment officer for
Cornerstone Wealth.
"As we get closer to the slower season, investors should
start thinking about taking some risk off the table if they have
not done so already."
Shares of AT&T Inc T.N jumped 5.2% after the company's
wireless subscriber additions trounced analysts' estimates.
Data showed existing home sales dropped 3.7% to a seasonally
adjusted annual rate of 6.01 million units last month, the
lowest level since August 2020, pulled down by an acute shortage
of properties, which is boosting prices and making owning a
house more expensive for some first-time buyers. Speedy vaccination rollouts in the United States has
improved the pace of economic recovery, infused confidence among
people and given a solid start to the first-quarter earnings
season.
However, a surge in COVID-19 cases in India and elsewhere in
Asia is weighing on sentiment.
A Labor Department report showed initial claims for state
unemployment benefits totaled 547,000 for the week ended April
17 compared to 586,000 in the prior week. The data suggested
layoffs were subsiding and strengthened expectations for another
month of blockbuster job growth in April.
At 10:28 a.m. ET the Dow Jones Industrial Average .DJI was
down 150.19 points, or 0.44%, at 33,987.12, the S&P 500 .SPX
was down 7.42 points, or 0.18%, at 4,166.00 and the Nasdaq
Composite .IXIC was up 10.43 points, or 0.07%, at 13,960.65.
Chipmaker Intel Corp INTC.O is expected to post a drop in
first-quarter revenue later in the day, with analysts looking
forward to updates on its U.S. manufacturing plants and chips
for automakers amid a global microchip supply shortage. Its
shares fell 1%.
Declining issues outnumbered advancers for a 1.06-to-1 ratio
on the NYSE. Advancing issues outnumbered decliners by a
1.38-to-1 ratio on the Nasdaq.
The S&P index recorded 58 new 52-week highs and no new low,
while the Nasdaq recorded 54 new highs and 6 new lows.