Dow Jones Falls; Pelosi Touts Infrastructure Progress, Senate Passes

The Dow Jones Industrial Average fell. The Senate passed a bill to avert a government shutdown, while House Speaker Nancy Pelosi touted “very positive” progress on an infrastructure bill. Microsoft (MSFT) reversed while Intel (INTC) inched higher. CarMax (KMX) flashed multiple sell signals after an earnings miss.

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The market was struggling for direction, which made breakouts difficult. But that didn’t stop Western Alliance Bancorp (WAL) from testing a new buy point. Meanwhile, Northern Oil & Gas (NOG) was showing impressive relative strength.

Pelosi Touts ‘Positive’ Talks; Senate Passes Shutdown Bill

House Speaker Nancy Pelosi told reporters the House was “proceeding in a very positive way” toward bringing the bipartisan $1 trillion infrastructure bill forward for a vote Thursday.

There are fears that progressive Democrats could derail the bill as they battle with party moderates over the controversial $3.5 trillion so-called human infrastructure bill. The package contains a sweep of health care, education and climate measures.

Meanwhile, Senate Majority Leader Chuck Schumer achieved a small victory after passing a bill to fund the government through Dec. 3. It was approved by 65 votes to 35.

“I’m confident the House will approve this measure later this afternoon and send it to the president’s desk before funding runs out,” Schumer said earlier on Thursday.

A mix of economic data was also released Thursday. The Labor Department reported first-time applications for unemployment assistance increased to 362,000 in the week ended Sept. 25. Analysts had expected a decline to 335,000.

The Commerce Department revised upward its final estimate for second-quarter gross domestic product growth, to a 6.7% increase. That was up from its initial 6.6% estimate, and in line with economist expectations as the economy continues to rebound from its pandemic slump. Personal consumption and expenditures posted a 12% year-over-year gain, revised upward from an initial estimate of 11.9% growth.

Nasdaq Up As Stock Market Struggles

The stock market looks set to end September on a sour note, with all major indexes slipping for the month.

The Nasdaq saw early gains melt away as bears battled the bulls. At around 2:44 p.m. ET, the composite index was trading up 0.4%.

Dollar Tree (DLTR) had been the biggest laggard, falling around 6%. It comes after Wednesday’s spike on plans to add price points above $1 across Dollar Tree Plus stores. It will also test price points above $1 in some legacy stores.

The S&P 500 was suffering more, falling about 0.3%. Outside of CarMax, Gap (GPS) had been the biggest loser, falling around 7%. Paychex (PAYX) was a bright spot, gaining over 5%.