Starbucks Rises, Facebook Falls, and the Dow Stalls After Miserable Jobless Claims

Stocks continued their decline Thursday morning after a rough day Wednesday as investors await the passage of a proposed $916 billion fiscal stimulus bill. Weaker-than-expected jobless claims aren’t helping matters either.

Futures for the Dow Jones Industrial Average had fallen 52 points, or 0.2%, while S&P 500 futures were off 0.3%, and futures on the tech-heavy Nasdaq Composite were off 0.6%.

Big tech stocks were leading the market lower, with Apple (AAPL) down 0.8%. Facebook (FB) fell 1% a day after the Federal Trade Commission and 46 states filed separate antitrust lawsuits against the social media giant. The lawsuits say Facebook had been too aggressive in acquiring potentially competitive companies. The lawsuits could force Facebook to sell What’s App and Instagram, its most important growth driver.

Elsewhere, investors are hoping that a fiscal stimulus bill can be finalized. The House of Representatives voted to fund the government for a week to buy more time for spending and relief bills. U.S. jobless claims surged to 835,000, missing forecasts for 725,000, perhaps providing more of an impetus to get a deal done.

The European Central Bank increased its bond-buying program to 1.85 trillion Euros, or $2.2 trillion to further support a Eurozone haunted by a stubborn Covid-19 infection rate. The bank also will make cheap loans to banks.

Here were some notable stock moves Thursday:

Starbucks (SBUX) shares rose 3.5% after the company increased its long-term sales and earnings expectations at its investor day. The company raised its longer-term earnings-per-share growth forecast to between 10% and 12%, up from a prior guide of at least 10%.

Shares of network equipment supplier Ciena Corporation (CIEN) fell 6% after a mixed quarter. The company reported earnings of 60 cents a share, missing estimates of 63 cents. Revenue came in at $828 million, topping estimates of $826 million.

Shares of Tesla (TSLA) fell 4.7% after getting cut to Neutral from Buy at New Street.

Shares of Canada Goose (GOOS) fell 2.3% after Goldman Sachs downgraded the stock to Sell from Neutral and reduced its price target to $25 from $26.

Best Buy (BBY) fell 2.5% after Goldman downgraded the stock to Sell from Neutral and lowered its price target to $97 from $107.

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com