US close: Stocks end slightly higher as oil recovers, healthcare lends support
US stocks ended in the black, reversing earlier losses as oil prices recovered, although gains were limited as investors looked to the non-farm payrolls report on Friday.
The Dow Jones Industrial Average and the S&P 500 closed up 0.3%, while the Nasdaq rose 0.4%.
At the same time, oil prices recovered from declines earlier in the session after the meeting of the Organisation of the Petroleum Exporting Countries in Vienna failed to yield any new agreement on oil production. Expectations had been low going into the meeting.
West Texas Intermediate was down just 0.1% at $48.97 per barrel and Brent crude was up 0.3% at $48.95.
Jobs data was in focus, with initial claims and the ADP report out ahead of Friday’s all-important non-farms.
Figures released by consultancy ADP showed the US private sector added 173,000 jobs in May, a touch lighter than the 175,000 that was forecast by economists.
The April figure was revised up to show a 166,000 increase from 156,000.
Mark Zandi, chief economist of Moody's Analytics, said: “Job growth has moderated this spring as energy companies and manufacturers shed jobs. Retailers are also more circumspect in their hiring. Despite the recent slowdown, job growth remains strong enough to reduce underemployment.”
Meanwhile, data from the Labor Department revealed the number of Americans filing for unemployment benefits unexpectedly fell last week. US initial jobless claims fell by 1,000 to 267,000, versus expectations for an increase to 270,000. This marked 65 consecutive weeks of initial claims below 300,000 - the longest streak since 1973.
Friday’s non-farm payrolls report is expected to show US employers added 160,000 jobs in May, the same as the previous month. The unemployment rate is forecast to have fallen to 4.9% from 5.0%.
The Fed is monitoring the health of the labour market as it determines the timing of its next interest rate hike ahead of its 14-15 June policy meeting.
“Current market pricing suggests a 24% chance of a move in June, a drop from yesterday, but with non-farm payrolls looming on Friday we could easily see the declining trend reversed if the figures look robust on most measures,” said Chris Beauchamp, senior market analyst at IG.
A strong showing in healthcare stocks lent support, led higher by Johnson & Johnson, which racked up healthy gains after announcing the acquisition of haircare company Vogue International.
Mining equipment maker Joy Global surged after posting a surprise adjusted quarterly profit.
Shares in cloud storage company Box Inc tumbled after its billings for the quarter fell short of expectations late on Wednesday.
Homebuilder Hovnanian Enterprises slumped after reporting second quarter earnings that fell short of analysts’ expectations.
S&P 500 - Risers
United States Steel Corp. (X) $14.87 +5.69%
Humana Inc. (HUM) $187.36 +5.61%
Endo International Plc (ENDP) $17.44 +4.93%
L Brands Inc (LB) $71.33 +4.27%
Aetna Inc. (AET) $120.03 +4.11%
Macy's Inc. (M) $34.35 +4.00%
AbbVie Inc (ABBV) $65.09 +3.60%
Kohls Corp. (KSS) $37.38 +3.35%
Seagate Technology Plc (STX) $23.75 +3.22%
Medtronic Plc (MDT) $82.99 +3.07%
S&P 500 - Fallers
Signet Jewelers Ltd (SIG) $92.23 -6.58%
Diamond Offshore Drilling Inc. (DO) $24.30 -3.99%
Oracle Corp. (ORCL) $38.66 -3.97%
Franklin Resources Inc. (BEN) $35.78 -2.82%
Chesapeake Energy Corp. (CHK) $4.25 -2.75%
Tyson Foods Inc. (TSN) $62.60 -2.66%
Delta Airlines Inc. (DAL) $42.45 -2.44%
LyondellBasell Industries (LYB) $80.58 -2.33%
Helmerich & Payne Inc. (HP) $58.87 -1.57%
Invesco Ltd. (IVZ) $30.83 -1.53%
Dow Jones I.A - Risers
E.I. du Pont de Nemours and Co. (DD) $68.10 +2.56%
Caterpillar Inc. (CAT) $73.62 +1.87%
Johnson & Johnson (JNJ) $114.49 +1.52%
Unitedhealth Group Inc. (UNH) $136.04 +1.12%
Visa Inc. (V) $79.95 +0.92%
Merck & Co. Inc. (MRK) $56.82 +0.87%
American Express Co. (AXP) $66.41 +0.76%
Verizon Communications Inc. (VZ) $50.77 +0.67%
International Business Machines Corp. (IBM) $153.50 +0.65%
Wal-Mart Stores Inc. (WMT) $70.95 +0.64%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $88.53 -0.80%
Apple Inc. (AAPL) $97.72 -0.75%
Nike Inc. (NKE) $54.53 -0.73%
Microsoft Corp. (MSFT) $52.48 -0.70%
McDonald's Corp. (MCD) $121.17 -0.66%
Chevron Corp. (CVX) $100.53 -0.59%
Goldman Sachs Group Inc. (GS) $159.28 -0.43%
3M Co. (MMM) $168.04 -0.39%
General Electric Co. (GE) $30.05 -0.20%
Nasdaq 100 - Risers
Dish Network Corp. (DISH) $53.68 +5.82%
Endo International Plc (ENDP) $17.44 +4.93%
Biomarin Pharmaceutical Inc. (BMRN) $91.52 +4.71%
Sba Communications Corp. (SBAC) $101.75 +3.45%
Seagate Technology Plc (STX) $23.75 +3.22%
Incyte Corp. (INCY) $87.71 +2.97%
Liberty Global plc Series A (LBTYA) $38.43 +2.78%
Alexion Pharmaceuticals Inc. (ALXN) $156.77 +2.67%
Liberty Global plc Series C (LBTYK) $37.17 +2.59%
Liberty Media Corporation - Series C (LMCK) $19.57 +2.41%
Nasdaq 100 - Fallers
Skyworks Solutions Inc. (SWKS) $66.58 -1.03%
Nxp Semiconductors Nv (NXPI) $93.50 -0.89%
American Airlines Group (AAL) $31.67 -0.88%
Apple Inc. (AAPL) $97.72 -0.75%
Microsoft Corp. (MSFT) $52.48 -0.70%
Costco Wholesale Corp. (COST) $151.51 -0.66%
Analog Devices Inc. (ADI) $58.28 -0.63%
JD.com, Inc. (JD) $23.66 -0.57%
Alphabet Inc. Class A (GOOGL) $744.27 -0.56%
Xilinx Inc. (XLNX) $47.12 -0.53%