US open: Stocks fluctuate after China cuts interest rates

US stocks fluctuated on Monday as investors digested an interest rates cut in China and awaited to see whether the market would build on last week’s jobs boost.

Just before 15:00 BST, the Dow Jones Industrial Average was down 20 points, while the S&P 500 and the Nasdaq gained 0.5 and eight points respectively.

Data released on Friday showed employers added 223,000 jobs in April, compared with a consensus forecast for an increase of 220,000, while the unemployment rate was bang in line with estimates, falling to 5.4% last month from 5.5% in March.

However, while the report indicated US economy remained strong, it was not enough for the Federal Reserve to change the timing of its first rate hike.

“The April US jobs report on Friday indicated a modest bounce back that eased both economic growth and rate-hike fears and helped stocks move higher,” said Jasper Lawler, market analyst at CMC Markets.

Meanwhile, the People’s Bank of China on Sunday lowered interest rates to 5.1% and the deposit rate to 2.25%. It marked the third time in six months the bank has reduced interest rates amid a slowdown in the world’s second largest economy.

The earnings season is slowing down, with only 14 S&P 500 companies set to report this week.

Pay TV provider Dish Network Corp slid 0.6% after saying its quarterly profit doubled, although its subscribers declined.

Art business group Sotheby’s climbed 0.9% after its quarterly profit and revenue topped forecasts, while food and beverage group Dean Foods surged 8.78% after posting better-than-expected quarterly results and outlook early on Monday.

“Despite warnings of a bubble and fears about what rising rates will do to stocks, forward earnings ratios in US markets still look compelling, and there is little reason just yet to abandon stocks for the supposed haven of government bonds,” said Chris Beauchamp, senior market analyst at IG.

Oil prices fluctuated, with West Texas Intermediate climbing 0.54% to $59.71 a barrel, while Brent shed 0.25% to $65.22 a barrel.

The dollar was stable against the yen but gained 0.24% against the euro and fell 0.67% against the pound, while gold futures gained 0.04% to $1,189.40.