US open: Stock cautiously higher following jobless numbers
Major indices were cautiously higher early on Thursday as market participants digested a number of data points, including this week's jobless claims data from the Labor Department.
As of 1555 BST, the Dow Jones Industrial Average was up 0.11% at 38,849.90, while the S&P 500 advanced 0.04% to 5,356.15 and the Nasdaq Composite came out the gate 0.02% firmer at 17,191.31.
The Dow opened 42.57 points higher on Thursday, taking a modest bite out of losses recorded in the previous session when the S&P 500 and Nasdaq-100 both notched a fresh record close thanks to a rally in chipmaker Nvidia that saw it top a $3.0trn market valuation and surpass Apple in value.
On the macro front, US-based employers announced 64,789 cuts in April, according to Challenger, Gray & Christmas, down 28% from March's 14-month high of 90,309 and the 66,995 cuts announced at the same time a year earlier. However, the reading was still consistent with a tight labour market, but as labour costs continue to rise, companies will likely be slower to hire and further cuts will be needed in the coming months.
Elsewhere, Americans lined up for unemployment benefits at an accelerated clip in the week ended 1 June, according to the Department of Labor. Initial jobless claims jumped by 8,000 to 229,000, well above market expectations for a reading of 220,000 and the highest reading seen since the eight-month high of 232,000 back in early May. The previous week's level was revised up by 2,000 from 219,000 to 221,000. The results provide further evidence of a softening US labour market, bolstering the argument that the Federal Reserve should deliver multiple interest rate cuts before the year is out should inflation show some progress in reaching the centra bank's 2% target.
Finally, the US trade deficit in goods widened to $99.41bn in April, according to an advance estimate from the Census Bureau, the largest reading in almost two years, after an upwardly revised $92.29bn print a month earlier. Imports rose by 3.1%, principally due to higher purchases of automotive vehicles, while exports rose by 0.5%.
Wall Street traders were also looking ahead to Friday’s nonfarm payrolls report for May, with investors on the hunt for signs of a weakening labour market, which could support rate cuts from the Federal Reserve.
In the corporate space, sportswear maker Lululemon traded higher after it beat first-quarter expectations, while Five Below was down double-digits on the back of weaker-than-expected results and guidance.
Also of note, the yield on the benchmark ten-year Treasury note slipped back below 4.30%, helping boost sentiment across the board following a rise in bond yields towards the end of last month.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Salesforce.Com Inc. (CRM) $246.24 4.11%
Merck & Co. Inc. (MRK) $130.61 0.90%
Visa Inc. (V) $276.33 0.66%
Procter & Gamble Co. (PG) $167.06 0.61%
Verizon Communications Inc. (VZ) $41.54 0.47%
Travelers Company Inc. (TRV) $209.14 0.35%
Nike Inc. (NKE) $94.65 0.35%
Amgen Inc. (AMGN) $308.33 0.31%
Coca-Cola Co. (KO) $64.08 0.25%
Johnson & Johnson (JNJ) $146.33 0.25%
Dow Jones - Fallers
Intel Corp. (INTC) $30.38 -1.30%
Walgreens Boots Alliance, Inc. (WBA) $15.85 -0.53%
Boeing Co. (BA) $188.85 -0.53%
Unitedhealth Group Inc. (UNH) $500.88 -0.45%
Caterpillar Inc. (CAT) $328.27 -0.36%
3M Co. (MMM) $98.73 -0.33%
Walt Disney Co. (DIS) $101.19 -0.31%
Microsoft Corp. (MSFT) $423.01 -0.24%
Goldman Sachs Group Inc. (GS) $460.69 -0.21%
Home Depot Inc. (HD) $329.61 -0.20%
S&P 500 - Risers
J. M. Smucker Co. (SJM) $116.94 5.99%
Illumina Inc. (ILMN) $111.64 4.54%
Salesforce.Com Inc. (CRM) $246.24 4.11%
Paypal Holdings Inc (PYPL) $65.81 3.59%
Expedia Group Inc. (EXPE) $119.42 3.52%
Brown Forman Corp. Class B (BF.B) $44.18 2.65%
Charter Communications Inc. (CHTR) $284.68 2.37%
Iron Mountain Inc (New) (IRM) $84.16 2.21%
United Airlines Holdings Inc (UAL) $53.97 1.99%
HP Inc (HPQ) $36.33 1.98%
S&P 500 - Fallers
Harley-Davidson Inc. (HOG) $34.12 -3.45%
Nordstrom Inc. (JWN) $21.54 -3.15%
Westrock Company (WRK) $51.99 -3.00%
Albemarle Corp. (ALB) $115.21 -2.90%
Dollar General Corp (DG) $130.55 -2.88%
Eaton Corporation plc (ETN) $317.38 -2.82%
Carmax Inc. (KMX) $70.46 -2.54%
Foot Locker Inc. (FL) $26.27 -2.52%
NRG Energy Inc. (NRG) $79.58 -2.42%
Micron Technology Inc. (MU) $130.67 -2.27%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $111.64 4.54%
Paypal Holdings Inc (PYPL) $65.81 3.59%
Expedia Group Inc. (EXPE) $119.42 3.52%
Charter Communications Inc. (CHTR) $284.68 2.37%
Workday, Inc. (WDAY) $216.40 1.85%
Adobe Systems Inc. (ADBE) $464.05 1.81%
Comcast Corp. (CMCSA) $39.74 1.55%
Meta Platforms Inc. (META) $502.29 1.46%
Monster Beverage Corp (MNST) $52.72 1.38%
eBay Inc. (EBAY) $53.65 1.22%
Nasdaq 100 - Fallers
Micron Technology Inc. (MU) $130.67 -2.27%
JD.com, Inc. (JD) $29.95 -2.09%
Fastenal Co. (FAST) $63.87 -2.02%
Western Digital Corp. (WDC) $75.36 -2.00%
Biogen Inc (BIIB) $232.03 -1.98%
Seagate Technology Plc (STX) $95.01 -1.65%
Kraft Heinz Co. (KHC) $34.12 -1.60%
Intel Corp. (INTC) $30.38 -1.30%
Intuitive Surgical Inc. (ISRG) $411.91 -1.28%
Broadcom Inc. (AVGO) $1,398.62 -1.02%