After moving mostly higher over the two previous sessions, stocks have shown a lack of direction over the course of the trading day on Thursday. The major averages have spent much of the day lingering near the unchanged line.
Currently, the major averages are narrowly mixed. While the Dow is down 91.33 points or 0.2 percent at 44,781.95, the Nasdaq is up 39.42 points or 0.2 percent at 19,731.75 and the S&P 500 is up 14.26 points or 0.2 percent at 6,075.74.
The choppy trading on Wall Street comes as traders seem 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 this morning 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 are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Steel stocks have shown a strong move to the upside, however, with the NYSE Arca Steel Index climbing by 1.8 percent to its best intraday level in well over a month.
Notable strength is also visible among pharmaceutical stocks, as reflected by the 1.3 percent gain being posted by the NYSE Arca Pharmaceutical Index.
Drug giant Eli Lilly (LLY) has moved sharply higher after reporting fourth quarter earnings that exceeded analyst estimates.
On the other hand, natural gas stocks have shown a significant move to the downside, dragging the NYSE Arca Natural Gas Index down by 1.2 percent.
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 have also moved to the upside on the day. While the U.K.’s FTSE 100 Index is up by 1.3 percent, the French CAC 40 Index and the German DAX Index are both up by 1.2 percent.
In the bond market, treasuries are giving back ground after moving notably higher in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.2 basis points at 4.442 percent.
Business News
U.S. Stocks Lack Direction Ahead Of Monthly Jobs Report
2025-02-06 16:18:11
