(RTTNews) – After showing a lack of direction early in the session, stocks have moved mostly higher over the course of the trading day on Thursday. The major averages have all moved to the upside, although buying interest remains somewhat subdued.
In recent trading, the Dow and the S&P 500 have reached new highs for the session. The Dow is up 145.39 points or 0.3 percent at 45,416.62, the Nasdaq is up 63.03 points or 0.3 percent at 21,560.76 and the S&P 500 is up 22.37 points or 0.4 percent at 6,470.63.
The strength that has emerged on Wall Street comes as traders digest the latest U.S. economic data, including a report from payroll processor ADP showing weaker than expected private sector job growth in the month of August.
ADP said private sector employment rose by 54,000 jobs in August after jumping by an upwardly revised 106,000 jobs in July.
Economists had expected private sector employment to rise by 65,000 jobs compared to the addition of 104,000 jobs originally reported for the previous month.
The Labor Department also released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 30th.
The report said initial jobless claims climbed to 237,000, an increase of 8,000 from the previous week’s unrevised level of 229,000. Economists had expected jobless claims to inch up to 230,000.
With the bigger than expected increase, jobless claims reached their highest level since hitting a matching figure in the week ended June 21st.
While the reports add to recent signs of weakness in the labor market, the data has also increased confidence the Federal Reserve will lower interest rates later this month.
“We continue to see softness growing in the labor market as tariff policy uncertainty lingers, immigration changes take effect, and AI adoption grows,” said Eric Teal, Chief Investment Officer for Comerica Wealth Management.
He added, “The silver-lining is the weaker the jobs data the more cover there is for stimulative interest rate cuts that are on the horizon.”
CME Group’s FedWatch Tool is currently indicating a 95.6 percent chance the Fed will lower interest rates by 25 basis points at its September 16-17 meeting.
On Friday, the Labor Department is scheduled to release its more closely watched report on the employment situation in the month of August.
Economists currently expect employment to increase by 75,000 jobs in August after rising by 73,000 jobs in July, while the unemployment rate is expected to inch up to 4.3 percent from 4.2 percent.
Sector News
Networking stocks are turning in some of the market’s best performances on the day, with the NYSE Arca Networking Index surging by 2.7 percent to a record intraday high.
Ciena (CIEN) has helped to lead the sector higher, soaring by 20.9 percent after reporting better than expected fiscal third quarter results.
Considerable strength is also visible among computer hardware stocks, as reflected by the 2.5 percent jump by the NYSE Arca Computer Hardware Index.
Shares of Hewlett Packard Enterprise (HPE) have spiked by 5.3 percent after the company reported fiscal third quarter results that exceeded expectations and raise its full-year earnings guidance.
Oil service, retail and housing stocks are also seeing significant strength on the day, while gold stocks have moved to the downside along with her price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index surged by 1.5 percent, while China’s Shanghai Composite Index slumped by 1.3 percent.
Meanwhile, European stocks have moved mostly higher on the day. The German DAX Index is up by 0.8 percent and the U.K.’s FTSE 100 Index is up by 0.6 percent, although the French CAC 40 Index has bucked the uptrend and edged down by 0.1 percent.
In the bond market, treasuries are seeing modest strength, adding to the strong gains posted in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.6 basis points at 4.195 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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