Wall St opens higher as jobs data eases slowdown fears
Wall Street’s main indexes have opened higher, bolstered by better-than-expected jobs data that eased worries of an imminent slowdown in the world’s largest economy.
Data showed the number of Americans filing new applications for unemployment benefits fell more than expected last week, suggesting fears the labour market was unraveling were overblown.
Most megacap and growth stocks advanced, looking to stabilise after a free fall on Monday as disappointing jobs data last week sparked fears of a potential recession.
“Since the jobs report on Friday, everyone’s been nervous about a recession … The claims came in lower than expected, alleviating some of the fear that the labour market was completely rolling over,” said Thomas Hayes, chairman at Great Hill Capital LLC.
“We have a reasonably robust economy and not an imminent recession, so we can wait a few more weeks for that final first cut from the Fed.”
In early trading on Thursday, the Dow Jones Industrial Average rose 268.69 points, or 0.69 per cent, to 39,032.14, the S&P 500 gained 55.42 points, or 1.07 per cent, to 5,254.92 and the Nasdaq Composite gained 215.69 points, or 1.33 per cent, to 16,411.49.
Global markets are still recovering from the rout earlier this week amid heightened volatility. Earlier in the day, J.P.Morgan raised the odds of a US recession by the end of this year to 35 per cent from 25 per cent, citing easing labour market pressures.
The Nasdaq closed one per cent lower in the previous session, as tech stocks lost steam after a brief rebound following a global stocks rout, and weak demand in a 10-year Treasury auction.
Nine of the 11 major S&P sectors were trading higher, with information technology and health care leading gains.
On the earnings front, Eli Lilly jumped 10.5 per cent after the drugmaker raised its annual profit forecast, and sales of its popular weight-loss drug Zepbound crossed $US1 billion ($A1.5 billion) for the first time in a quarter.
Under Armour surged 15.8 per cent after the sports apparel maker posted a surprise first-quarter profit, benefiting from its efforts to cut inventory and promotions.
Bumble slashed its annual revenue growth forecast, stoking worries about the dating app operator’s growth plans, sending its shares down 36 per cent.
Warner Bros Discovery dropped 7.9 per cent after it wrote down the value of its TV assets due to the uncertainty of fees from cable and satellite distributors and sports rights renewals.
Monster Beverage lost 12.9 per cent after the energy drinks maker missed market expectations for second-quarter sales as budget-conscious consumers kept a tight lid on spending.
Markets will now focus on comments from Richmond Fed President Thomas Barkin, who will be speaking later on Thursday, for any clues on the US central bank’s next move.
Advancing issues outnumbered decliners by a 3.43-to-1 ratio on the NYSE and by a 2.64-to-1 ratio on the Nasdaq.
The S&P 500 posted no new 52-week highs and two new lows while the Nasdaq Composite recorded 7 new highs and 52 new lows.
#Wall #opens #higher #jobs #data #eases #slowdown #fears