US stocks are sleeping their way into the weekend, despite the catalyst of March's jobs figure.
“The March Employment Report was solid, with a very healthy 215,000 gain in establishment payrolls, a 0.3% rise in wages, and a tick up in the unemployment rate to 5.0% reflecting a large increase in the Household Survey’s labor force (+396,000), employment (+246,000) and unemployment (+151,000), and as a result another monthly rise in both the labor force participation rate and the employment-to-population ratio,” wrote Mickey Levy of German bank Berenberg.
The blue-chip benchmark, the S&P 500, was up seven points (0.3%) at 2,066 in lunchtime trading, but outside of the blue-chips the picture was mixed. The mid-cap S&P 400 was a point softer at 1,444, and the small-cap index, the Russell 2,000, was also off a point, at 1,113.
Proceeds from the sale of its 59% interest in Rentech Nitrogen Partners has allowed Rentech Inc (NASDAQ:RTX) to retire some $42mln of senior debt, cutting back future interest payments and giving it more firepower to maximize its investment in the wood fibre processing industry.
The company trousered $262mln from the sale, sparking a 20% rise in the share price to $2.67.
Also on the up was Regeneron Pharmaceuticals Inc (NASDAQ:REGN), after it revealed that the experimental drug it developed with Sanofi for a debilitating skin condition called atopic dermatitis met all of its major treatment targets in two late-stage studies.
The shares rose 13% to $408.27 as the company hailed “a key step in advancing a potential blockbuster medicine toward the market”.
Open
Shares opened modestly lower despite a better-than-expected jobs figure for March.
Non-farm payrolls rose by 215,000 in March, topping expectations of a 205,000 rise, while February’s increase was revised up from 242,000 to 245,000.
“Although the unemployment rate rose to 5.0%, up from an eight-year low of 4.9%, this was in part due to more people entering the labour market. At 63%, the participation rate was the highest since March 2014,” noted Chris Williamson at Markit.
“However, while the labour market data shout ‘rate hike’, signs of a worrying weakness in the pace of economic growth at home and abroad caution against the Fed rushing into any further tightening of policy,” Williamson suggested.
The benchmark S&P 500 index was down a shade after an hour's trading, at 2,056, down four points to 0.2%.
Its baby brother, the S&P 400, which tracks mid-caps, was off eight points (0.6%) at 1,437 while the small-cap measure, the Russell 2,000, was also down eight points (0.7%), at 1,107.
On the Nasdaq exchange, Cardiovascular Systems Inc (NASDAQ:CSII) was setting the pace after strong then expected fiscal third quarter numbers.
The medical device maker said revenue for the January – March quarter is expected to come in at around $43.5mln to $44mln, which represents an improvement on previous guidance of $40.5mln to $42mln.
Investors headed for the exit at Rovi Corporation (NASDAQ:ROVI) after the digital entertainment company sued Comcast Corporation (NASDAQ:CMSA), the media and technology company.
Rovi asserts infringement by Comcast, together with its set-top box suppliers, of 14 US patents that together deliver the most important features to Comcast customers.