US stocks finished a volatile session slightly lower on Thursday, following the previous day’s record highs. The S&P 500 and the Nasdaq each lost 0.2%, while the Dow Jones ended 0.1% lower after briefly touching an all-time high of 40,051 during the day. Recent economic data was mixed, including a decline in initial jobless claims, higher-than-expected import and export prices, disappointing housing starts and building permits, and a stall in industrial production.The materials and consumer discretionary sectors were the biggest laggards, while consumer staples outperformed, driven by a 7% jump in Walmart shares after the retailer's quarterly results exceeded expectations. Costco also closed at a record high, reaching $794 for the first time. In contrast, Deere & Co fell by 4.7% after cutting this year’s guidance, and Cisco declined by 2.7% despite reporting upbeat quarterly results. Meanwhile, meme stocks GameStop and AMC fell for a second day, shedding 30% and 15.3%, respectively.

Industrial production in the US was little changed in April, following a 0.1% increase in March and missing market expectations of a 0.1% growth. Manufacturing output, which makes up 78% of total production, decreased 0.3 percent, compared with market forecast of 0.1% increase. Also, mining output decreased 0.6 percent, largely because of an 18.1 percent decline in the index for coal mining. On the other hand, the output of utilities increased 2.8 percent. Capacity utilization moved down to 78.4 percent in April, a rate that is 1.2 percentage points below its long-run (1972–2023) average.

Import prices in the US rose 0.9% month-over-month in April 2024, the most since March 2022, accelerating from an upwardly revised 0.6% gain in March and beating market forecasts for a 0.3% increase. Prices for fuel imports advanced by 2.4%. Meanwhile, nonfuel import prices rose 0.7%, the steepest pace since March 2022, with higher costs of nonfuel industrial supplies & materials; foods, feeds, & beverages; automotive vehicles; capital goods; and consumer goods contributing to the upturn. Foods, feeds, & beverages inflation picked up to 1.7%, as growing prices for bakery and confectionary products and fruit more than offset lower vegetable prices. Year-on-year, import prices increased by 1.1%.

The number of people claiming unemployment benefits in the US fell by 10,000 to 222,000 on the week ending May 11th, less than market expectations of 220,000. It was the third-highest reading this year, keeping the claims well above the last 9 months' average, and pointing to the weakening labor market in the US. The four-week moving average, which reduces week-to-week volatility, rose by 2,500 to 217,750. The non-seasonally adjusted claim count fell by 13,325 to 196,725, as an increase in Florida (1,158) limited a sharp seasonal decline in New York (-9,442). Meanwhile, outstanding claims increased to 1,794,000 in the week ending May 4th, the highest in one month, to reflect tightness in the job market.

Italy posted a trade surplus of EUR 4.341 billion in March of 2024, below market expectations of EUR 4.77 billion. This reading came above a surplus of EUR 3.327 billion from the corresponding period of the previous year, as prices for key commodities for the Italian economy have retreated since the start of Russia’s invasion of Ukraine, limiting turnover in foreign purchases. Imports slumped by 11.2% from the previous year to EUR 49.839 billion, with lower natural gas prices driving their purchasing turnover to slump by 35.4%, while a moderation in crude oil prices lowered imports by 32.6%. Imports also fell for wood & wood products (-14.7%) and machinery & equipment (-14.1%). On the other hand, exports fell by 8.9% to EUR 54.18 billion, driven by lower sales of basic metals & metal products (-19.3%) and textile products (-16.5%).

Japan's GDP shrank 0.5% qoq in Q1 of 2024, compared with market estimates of a 0.4% fall and after a downwardly revised stagnation in the prior quarter, a flash figure showed. Private consumption, which accounts for more than half of the economy, fell for the fourth straight quarter (-0.7% vs -0.4% in Q4), coming worse than forecasts of a 0.2% decrease and marking the steepest fall in three quarters as consumers continued to reduce their spending in the face of expensive costs of living and sluggish wages, and after a quake that struck the Noto peninsula at the start of the year. Capital expenditure also dropped (-0.8% vs 1.8%), compared with expectations of a 0.7% fall, due to the significant reduction of auto production after a scandal at Toyota's unit Daihatsu Motor. Net trade was also a drag on the GDP, matching forecasts, as exports (-5.0% vs 2.8%) declined more than imports (-3.4% vs 1.8%). On the other hand, government spending grew by 0.2%, compared with a 0.2% drop previously.