Stocks showed a lack of direction over the course of the trading session on Thursday, with the major averages swinging back and forth across the unchanged line before eventually closing mixed.
The Nasdaq and the S&P 500 reached new highs for the session going into the end the day, closing higher for the third straight session.
The Nasdaq climbed 99.66 points or 0.5 percent to 19,791.99 and the S&P 500 rose 22.09 points or 0.4 percent to 6,083.57, but the narrower Dow fell 125.65 points or 0.3 percent to 44,747.63.
The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the release of the Labor Department’s closely watched monthly jobs report on Friday.
The report, which is expected to show employment climbed by 170,000 jobs in January after jumping by 256,000 jobs in December, could impact the outlook for interest rates.
A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended February 1st.
The report said initial jobless claims climbed to 219,000, an increase of 11,000 from the previous week’s revised level of 208,000.
Economists had expected initial jobless claims to rise to 213,000 from the 207,000 originally reported for the previous week.
A separate report released by the Labor Department showed U.S. labor productivity and unit labor costs both increased by less than expected in the fourth quarter of 2024.
Sector News
Most of the major sectors showed only modest moves on the day, contributing to the lackluster performance by the broader markets.
Banking stocks moved notably higher over the course of the session, however, with the KBW Bank Index climbing by 1.5 percent to its best closing level in almost two years.
Considerable strength was also visible among computer hardware stocks, as reflected by the 1.3 percent gain posted by the NYSE Arca Computer Hardware Index.
Steel stocks also turned in a strong performance, while energy stocks were under pressure, dragging the NYSE Arca Oil Index and the NYSE Arca Natural Gas Index down by 1.6 percent and 1.5 percent, respectively.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan’s Nikkei 225 Index climbed by 0.6 percent, while China’s Shanghai Composite Index jumped by 1.3 percent.
The major European markets also showed strong moves to the upside on the day. While the U.K.’s FTSE 100 Index shot up by 1.2 percent, the French CAC 40 Index and the German DAX Index both surged by 1.5 percent.
In the bond market, treasuries saw a modest pullback after moving notably higher in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up 1.8 basis points to 4.440 percent.
Looking Ahead
The monthly jobs report is likely to be in the spotlight on Friday, while a preliminary readings on consumer sentiment and inflation expectations in February may also attract attention.
On the earnings front, online retail giant Amazon (AMZN) is among the companies releasing their quarterly results after the close of today’s trading.
Nasdaq, S&P 500 See Further Upside Ahead Of Jobs Report But Dow Gives Back Ground
2025-02-06 21:11:34
