It’s a down day for the major indices, which turned lower after the initial jobless claims came out.  Last week, unemployment claims increased to 861,000 from 848,000, and higher than the 773,000 estimate. This is the highest level in a month and has risen in the past two weeks.

In addition, 516,000 have filed for Pandemic Unemployment Assistance.  The silver lining is that continuing claims declined by 64,000 to 4.5 million. 

Disappointing earnings and guidance from Walmart (WMT) are also adding pressure to the market. It is not just stocks that are down, so is oil, treasury yields, and even Bitcoin. But the selling has been orderly.  

Nasdaq is the worst performing again, down 1.2% as Technology continues to lag, especially large cap tech.  Ten of the 11 S&P 500 sectors are down.  Utilities, often viewed as a safe haven, is the only sector in the green today.

Breadth is decidedly negative as is the down volume.

As discussions on inflation heat up, take a look at lumber.  It hit a record high today of $1,004.90 per 1,000 board feet, doubling in  just 3 months.  This increase in price weighed on much needed single- family homes, which fell 12% in January from December.

Robert Dietz, Chief Economist at the National Association of Home Builders, stated, “Builders report concerns over increasing lumber and other construction costs and delays in obtaining building materials,”. “Rising interest rates will also erode housing affordability in 2021, as inventories of existing homes remain low.”

Building permits are up however, increasing 10.4% from the prior month to 1,881,000 units, the largest increase since May 2006. The real increase was in multi-family, 5 units or more, which rose 28%.

On Capitol Hill, the GameStop circus is currently underway.