US close: Markets flat as investors await nonfarm payrolls

US stocks finished virtually flat on Thursday, as investors kept their wallets firmly shut ahead of Friday’s non-farm payrolls report.

Dow Jones I.A.

43,444.99

04:30 15/10/20

n/a

Nasdaq 100

20,394.13

12:15 15/11/24

-2.40%

-502.54

The Dow Jones Industrial Average was last down 0.07% at 18,268.50 points, the S&P 500 added 0.05% to 2,160.77 points and the Nasdaq 100 edged down 0.08% to 4,873.92 points.

Oil prices were firmly higher after data from the Energy Information Administration showed another drop in US weekly crude inventories.

West Texas Intermediate crude rose above the $50 per barrel mark for the first time since June, up 1.41% to $50.54 per barrel, while Brent crude gained 1.37% to $52.58 per barrel.

Meanwhile, the main event this week is Friday’s non-farm payrolls report as the Federal Reserve considers the health of the labour market in deciding the timing of the next interest rate hike.

Economists expect the report to show US employers added 170,000 jobs in September following a 151,000 increase in August. The unemployment rate is forecast to remain at 4.9%.

Ahead of the report, the Labor Department revealed the number of Americans filing for unemployment benefits unexpectedly fell last week.

US initial jobless claims fell by 5,000 from the previous week’s unrevised level to 249,000.

This marked the 83rd consecutive week of initial claims below 300,000 – the longest streak since 1970.

The four-week moving average came in at 253,500, down 2,500 from the previous week’s unrevised level, and the lowest level for this average since 9 December, 1978.

“The low level of initial claims indicates that, from the separations side, the labour market remains healthy,” said Barclays Research.

“With continuing claims also declining at a rapid rate, these data imply that workers who are losing their jobs are likely finding new ones.

“We expect this resumption in strength to manifest in improvement in employment growth over the remainder of this year at least relative to the doldrums we saw in the first half of 2016.”

On the corporate front, Twitter shares tumbled 20.09% following a report that Alphabet's Google is not planning to make a bid for the company.

Technology news website Recode also cited sources familiar with the matter on Wednesday as saying that Disney and Apple were also unlikely to make a bid.

Yum Brands shares fell 1.33% after its quarterly results released late on Wednesday missed analysts’ expectations.

Wal-Mart Stores was under pressure, falling 3.22% during the session, after the retailer provided a weak outlook for 2017.

It was last up 0.32% in after-hours trading.

Dow Jones - Risers

Home Depot Inc. (HD) $130.19 2.05%
E.I. du Pont de Nemours and Co. (DD) $69.06 1.44%
Apple Inc. (AAPL) $113.89 0.74%
Goldman Sachs Group Inc. (GS) $167.15 0.45%
McDonald's Corp. (MCD) $113.92 0.45%
Procter & Gamble Co. (PG) $89.22 0.42%
Walt Disney Co. (DIS) $92.83 0.41%
JP Morgan Chase & Co. (JPM) $67.87 0.27%
Intel Corp. (INTC) $38.07 0.21%
Microsoft Corp. (MSFT) $57.74 0.17%