Dow, S&P little changed as job growth slows in May

Marcus Newton
June 3, 2017

The S&P 500 and the Nasdaq closed at record high on Thursday, as investors were digesting a batch of economic data from the country.

All three major stock indices ended at records for the second straight session, with the Dow Jones Industrial Average adding 62.11 points (0.29 per cent) to close at 21,206.29.

The Nasdaq Composite Index climbed 22 points, or 0.4%, to 6,269.

Nonfarm payrolls increased by 138,000 last month, below the 185,000 expected by economists.

The May jobs report showed unemployment fell to 4.3 per cent, a 16-year low.

Stocks gained broadly Thursday, with all three major USA indexes closing at fresh highs. Additionally, the benign inflationary environment tugged the yield on the 10-year Treasury note to its lowest level in more than seven months.

The Dow is up 126.01 points, or 0.6 percent.

The U.S. government's more comprehensive report on jobs arrives on Friday.

More news: US unveils nosy new visa questionnaire
More news: Trump to announce decision on climate change Thursday
More news: Comey OK'd to testify; House committee issues subpoenas

"The market is beginning to rethink the Fed's course and whether there will still be two interest rate increases by the end of the year, plus a reduction of the balance sheet", said Gregori Volokhine, president of Meeschaert Capital Markets.

US private payrolls surged by 253,000, well above market expectations of a 185,000-gain, showed a monthly report by the payroll processor ADP on Thursday.

The S&P 500 (.SPX) was flat at 2,430.12, slightly easing from an all-time high of 2433.37.

Among the day's biggest movers, Lululemon Athletica Inc. jumped almost 17% after it reported first-quarter results that beat expectations.

Oil majors Exxon and Chevron were down about 0.5%.

The Russell 2000 is up 23.14 points, or 1.7 percent. Its shares fell $1.29, or 6.9 percent, to $17.52. "But it's just one data point that will not change the Fed's course, which is to raise rates at its June meeting", said Michael Antonelli, equity sales trader at Robert W. Baird & Co. On the Nasdaq, 1,620 issues rose and 705 fell. Brent crude, used to price global oils, slipped 14 cents to $50.62 per barrel.

Crude oil was about 1 percent lower with prices under $48 per barrel.

Other reports by MaliBehiribAe

Discuss This Article