Stocks came under pressure in early trading on Thursday but have shown a significant turnaround over the course of the session. The major averages have climbed well off their worst levels of the day and into positive territory.
Currently, the major averages are just off their highs of the session. The Nasdaq is up 70.03 points or 0.6 percent at 12,066.89, the S&P 500 is up 12.67 points or 0.3 percent at 4,103.05 and the Dow is up 29.66 points or 0.1 percent at 33,512.38.
The early weakness on Wall Street partly reflected lingering concerns about the economic outlook following the recent release of some disappointing data.
The Labor Department released a report this morning showing a drop in initial jobless claims in the week ended April 1st, although the decrease came from a notably upwardly revised level.
The Labor Department said initial jobless claims fell to 228,000, a decrease of 18,000 from the previous week’s revised level of 246,000.
Economists had expected initial jobless claims to inch up to 200,000 from the 198,000 originally reported for the previous week.
The Labor Department noted that beginning with the latest data, the methodology used to seasonally adjust the national initial claims and continued claims reflects a change in the estimation of the models.
Matthew Martin, U.S. Economist at Oxford Economics said the updated seasonal adjustment factors led to upwards revisions to the claims data over most of the last five years.
“The last 10 weeks saw on average 30k upward revision to claims, pointing to a labor market that’s less tight than previously estimated,” Martin added.
Selling pressure waned shortly after the start of trading, however, as traders seem reluctant to make significant moves ahead of the release of the Labor Department’s more closely watched employment report on Friday.
Economists currently expect the report to show employment increased by 240,000 jobs in March after climbing by 311,000 jobs in February. The unemployment rate is expected to hold at 3.6 percent.
The data could impact the outlook for interest rates and the economy, although traders will have to wait to react to the report, as the U.S. stock markets will be closed for Good Friday.
Sector News
Banking stocks have shown a strong move to the upside on the day, driving the KBW Bank Index up by 1.3 percent.
Notable strength has also emerged among biotechnology stocks, as reflected by the 1.2 percent gain being posted by the NYSE Arca Biotechnology Index.
Pharmaceutical and tobacco stocks are also seeing some strength in afternoon trading, while energy stocks have come under pressure over the course of the session amid a modest decrease by the price of crude oil.
With crude for May delivery slipping $0.22 to $80.39 a barrel, the Philadelphia Oil Service Index is down by 1.1 percent and the NYSE Arca Oil Index is down by 1.0 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Thursday. Japan’s Nikkei 225 Index tumbled by 1.2 percent and South Korea’s Kospi dove by 1.4 percent, while Indian stocks saw modest strength after the central bank unexpectedly left interest rates unchanged.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.’s FTSE 100 Index jumped by 1.0 percent, the German DAX Index climbed by 0.5 percent and the French CAC 40 Index inched up by 0.1 percent.
In the bond market, treasuries have shown a lack of direction over the course of the session. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by just 1 basis point at 3.277 percent.
Business News
U.S. Stocks Turn Positive After Early Move To The Downside
2023-04-06 17:23:19
