US close: Stocks higher ahead of Friday's payrolls report

Wall Street markets ended the trading day in the green on Thursday, as investors looked forward to crucial nonfarm payrolls data on Friday.

The Dow Jones Industrial Average edged up 0.01% to 33,485.29, while the S&P 500 rose 0.36% to 4,105.02, and the Nasdaq Composite increased 0.76% to settle at 12,087.96.

Employment data remained at the top of investors' minds, with a fresh initial jobless claims print still above 200,000 for the ninth consecutive week.

In currencies, the dollar was last down 0.01% against sterling to trade at 80.38p, while it was unchanged on the euro at 91.56 euro cents.

It fell 0.02% against the yen, meanwhile, to change hands at JPY 131.76.

“Friday’s US payrolls report will be a pivotal one for stocks,” quipped IG senior market analyst Axel Rudolph.

“The worst outcome would be rising wages and a weaker jobs number, something that might reverse the growing expectation of a Fed pause in May.

“Such a scenario would likely put stocks at risk of giving back their recent gains.”

Jobless claims show labour market remains tight

In economic news, newly-revised weekly jobless claims figures from the Department of Labor showed that the US jobs market remained tighter than previously thought.

The number of initial unemployment claims fell by 18,000 during the week ended 1 April, bringing the total to 228,000 on a seasonally-adjusted basis.

That number was significantly higher than the 200,000 claims expected by economists in a Dow Jones poll.

However, the previous week's tally for initial claims was revised up by 48,000 to 246,000.

Secondary unemployment claims rose by 6,000 to 1.823 million for the week ended 25 March.

"A rising trend in claims has been a key missing part of the labour market story, but it is now clear layoffs are increasing, while other data - notably the NFIB survey - point to much slower gross hiring," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“We still expect a 250,000 increase in March payrolls tomorrow, but we look for only 150,000 in April and we see a decent chance of zero readings around mid-year, consistent with our view that the economy is heading rapidly into a spring-summer recession.

“These data alone won’t stop the Fed from raising rates again in May, but they are a warning sign that should not be ignored.”

Elsewhere, job cut announcements in the US continued to rise in March, according to one of the country's largest staffing consultancies Challenger, Gray & Christmas.

It reported that US-based firms announced 89,703 job reductions, a 15% increase compared to the same period last year.

The first quarter of 2023 saw 270,416 job cuts announced, a near four-fold increase compared to the previous year.

Specifically, the number of cuts in March was the highest announced since the third quarter of 2020, when 497,215 layoffs were flagged.

Technology firms announced 102,391 cuts during the first quarter, marking a 5% increase compared to 2022's full-year tally.

That number was only surpassed by 2001 and 2002, when the sector announced 168,396 and 131,294 job cuts, respectively.

Financial firms announced the second-highest number of job cuts in the first quarter of 2023, with 30,635 cuts, marking a 419% increase compared to the same quarter in 2022.

Retail announced the fourth-highest number of cuts, with 21,426, which Challenger suggested could be a sign of decreased expectations.

"We know companies are approaching 2023 with caution, though the economy is still creating jobs,” said Andrew Challenger, senior vice president of Challenger.

“With rate hikes continuing and companies reigning in costs, the large-scale layoffs we are seeing will likely continue.”

AMC jumps on court ruling, Costco closes weaker

In equity markets, AMC Entertainment Holdings surged 20.99% after a court denied a motion to resolve a dispute between the cinema operator’s board and shareholders more quickly.

AMC was attempting to convert APE shares into regular shares, along with a reverse stock split, although it was facing backlash from investors.

On the downside, membership retailer Costco Wholesale closed 2.24% weaker after it reported its first fall in monthly same-store sales in almost three years late on Wednesday.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Microsoft Corp. (MSFT) $291.60 2.55%
Walmart Inc. (WMT) $150.80 0.75%
Unitedhealth Group Inc. (UNH) $512.81 0.70%
Boeing Co. (BA) $211.37 0.65%
Procter & Gamble Co. (PG) $152.20 0.63%
Travelers Company Inc. (TRV) $171.30 0.56%
Apple Inc. (AAPL) $164.66 0.55%
Merck & Co. Inc. (MRK) $112.36 0.38%
McDonald's Corp. (MCD) $282.87 0.31%
Goldman Sachs Group Inc. (GS) $322.40 0.27%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $209.17 -2.04%
Verizon Communications Inc. (VZ) $39.48 -1.57%
Salesforce.Com Inc. (CRM) $192.55 -1.41%
American Express Co. (AXP) $158.83 -1.40%
Chevron Corp. (CVX) $167.65 -1.31%
International Business Machines Corporation (CDI) (IBM) $130.50 -1.24%
Cisco Systems Inc. (CSCO) $51.27 -1.06%
Visa Inc. (V) $225.93 -0.96%
Walgreens Boots Alliance, Inc. (WBA) $35.78 -0.94%
3M Co. (MMM) $101.56 -0.71%

S&P 500 - Risers

Nektar Therapeutics (NKTR) $0.79 8.94%
Alphabet Inc. Class A (GOOGL) $108.42 3.78%
Alphabet Inc. Class C (GOOG) $108.90 3.76%
Comerica Inc. (CMA) $41.28 3.41%
Fidelity National Information Services Inc. (FIS) $55.43 3.18%
Keycorp (KEY) $11.91 3.03%
Carmax Inc. (KMX) $64.31 3.03%
Dish Network Corp. (DISH) $8.77 2.81%
Wells Fargo & Co. (WFC) $37.90 2.74%
Micron Technology Inc. (MU) $58.56 2.70%

S&P 500 - Fallers

Bread Financial Holdings, Inc. (BFH) $27.00 -6.64%
Mosaic Company (MOS) $43.69 -5.66%
FMC Corp. (FMC) $116.92 -4.07%
Marathon Petroleum Corporation (MPC) $128.68 -3.04%
PVH Corp. (PVH) $83.80 -2.81%
Lincoln National Corp. (LNC) $20.52 -2.61%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $520.95 -2.47%
Applied Materials Inc. (AMAT) $114.45 -2.45%
Occidental Petroleum Corp. (OXY) $63.04 -2.37%
CF Industries Holdings Inc. (CF) $71.46 -2.32%

Nasdaq 100 - Risers

Alphabet Inc. Class A (GOOGL) $108.42 3.78%
Alphabet Inc. Class C (GOOG) $108.90 3.76%
Biomarin Pharmaceutical Inc. (BMRN) $99.60 3.14%
Dish Network Corp. (DISH) $8.77 2.81%
Micron Technology Inc. (MU) $58.56 2.70%
Microsoft Corp. (MSFT) $291.60 2.55%
CSX Corp. (CSX) $30.02 2.49%
Trip.com Group Limited (TCOM) $37.64 2.45%
Incyte Corp. (INCY) $75.51 2.34%
Meta Platforms Inc. (META) $216.10 2.18%

Nasdaq 100 - Fallers

Qurate Retail Inc. (QRTEA) $0.81 -6.14%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $520.95 -2.47%
Applied Materials Inc. (AMAT) $114.45 -2.45%
Costco Wholesale Corp. (COST) $485.98 -2.24%
KLA-Tencor Corp. (KLAC) $374.66 -1.82%
Analog Devices Inc. (ADI) $187.17 -1.68%
Take-Two Interactive Software Inc. (TTWO) $119.00 -1.64%
Booking Holdings Inc. (BKNG) $2,583.85 -1.21%
Cisco Systems Inc. (CSCO) $51.27 -1.06%
Microchip Technology Inc. (MCHP) $78.70 -1.03%