After showing a lack of direction over the two previous sessions, stocks may continue to experience choppy trading early on Thursday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a tenth of a percent.
The futures had been pointed to a modestly lower open but regained ground following the release of a report from the Labor Department showing a much bigger than expected increase by first-time claims for U.S. unemployment benefits in the week ended May 4th.
The report said initial jobless claims climbed to 231,000, an increase of 22,000 from the previous week’s revised level of 209,000.
Economists had expected jobless claims to inch up to 210,000 from the 208,000 originally reported for the previous week.
With the much bigger than expected increase, jobless claims reached their highest level since hitting 234,000 in week ended August 26th.
The data may add to recently renewed optimism that the Federal Reserve will lower interest rates in the coming months.
Trading activity may remain somewhat subdued, however, as traders express some uncertainty about the near-term outlook for the markets.
Stocks showed a lack of direction over the course of the trading day on Wednesday, extending the lackluster performance seen during Tuesday’s session. Despite the choppy trading, the Dow closed higher for the sixth straight day, reaching its best closing level in over a month.
The major averages eventually finished the day mixed. While the Dow climbed 172.13 points or 0.4 percent to 39,056.39, the S&P 500 edged down 0.03 points or less than a tenth of a percent to 5,187.67 and the Nasdaq dipped 29.80 points or 0.2 percent to 16,302.76.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Thursday. Japan’s Nikkei 225 Index fell by 0.3 percent, while Hong Kong’s Hang Seng Index surged by 1.2 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has advanced by 0.8 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 0.3 percent.
In commodities trading, crude oil futures are rising $0.53 to $79.52 a barrel after climbing $0.61 to $78.99 a barrel on Wednesday. Meanwhile, after edging down $1.90 to $2,322.30 an ounce in the previous session, gold futures are inching up $3 to $2,325.30 an ounce.
On the currency front, the U.S. dollar is trading at 155.64 yen versus the 155.53 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0753 compared to yesterday’s $1.0748.
Business News
U.S. Stocks May Continue To Experience Choppy Trading
2024-05-09 12:53:35
