4:10pm US stocks climb at the close ahead of jobs data
US equities finished in the green across the board at the close of Thursday's trading, with both the S&P 500 and the Dow setting intraday highs.
Friday's highly anticipated montly jobs report will give investors a glimpse into the path forward to monetary policy into the coming 12 months.
On Wall Street, the S&P 500 closed 0.28% higher at 4,537 points, while the Dow finished 0.37% ahead at 35,444 points. Over on the Nasdaq, the tech-laden exchange ended the day a more modest 0.14% higher at 15,331 points.
12:10pm: US equities higher at midday
US stocks were higher midday after weekly jobless claims came in slightly better than expected
First-time claims for unemployment insurance totaled 340,000 for the week ended August 28, versus the consensus expectation for 345,000. The number is also the lowest since March 2020 at the beginning of the COVID-19 crisis.
The S&P 500 climbed to an all-time intraday high as it is on pace for its 54th record closing high of 2021.
As of noon, the Dow Jones Industrial Average was up 150 points, or 0.43%, at 35,463, while the broader-based S&P 500 increased 15 points, or 0.33%, to 4,539.
The tech-heavy Nasdaq, meanwhile, rose 47 points, or 0.31%, to stand at 15,357.
Joshua Mahony, senior market analyst at online trading group IG, noted that the prospect of the Federal Reserve taking a cautious stance on tapering is driving bullish sentiment.
Energy stocks also are driving the market higher as crude prices spike on weather-related production slumps, he added.
“US markets are leading the push higher today, as a marginal beat in the jobless claims reading did help allay some of the fears brought about after a disappointing ADP payrolls release yesterday,” Mahony said.
“With tapering set to remain a key concern in the coming months, the hope is that any short-term economic volatility brought about by rising Delta cases could cause hesitation from the Federal Reserve. Record highs in the US appear to be an almost daily occurrence, with the prospect of a cautious approach to tightening at the Fed providing a fresh bout of confidence from the bulls. This latest push higher has been driven in part by the tech sector, with Apple gains helping to lift the Dow and Nasdaq in particular.”
The biggest gainer on the day so far is Globalstar Inc, up 21% to $2.29 a share.
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2.45pm: US benchmarks positive at the open
US indices started higher on Thursday as traders eye a host of economic data on the way, including tomorrow's closely watched monthly job creation number.
The Dow Jones Industrial Average added almost 138 points at 35,450 shortly after the bell.
Meanwhile, the broader-based S&P 500 gained around 17 points at 4,541. The tech-laden Nasdaq added nearly 60 points to stand at 15,370.
"The data we had from the US yesterday suggests markets need to rein in expectations for Friday's NFP reading, with the ADP report missing by almost half and the ISM manufacturing employment sub-index slipping back into contraction territory. Of course, the ADP is hardly a reliable precursor but that was a huge miss so it's hard to ignore," said Craig Erlam, market analyst at Forex firm Oanda.
"Thankfully, as this may force a more cautious and patient approach from the Fed when it comes to tapering and interest rate hikes, it's seemingly been welcomed by the markets. That will make tomorrow's jobs report all the more interesting as a reading at, or above, expectations of 750,000 may be a nasty shock, despite being a healthy sign for the economy."
Today's data includes jobless claims, factory orders, and unit labor costs. There is also some more Fed commentary in the form of Atlanta president Raphael Bostic and San Francisco president Mary Daly, who are both due to speak.
6.45am: US stocks poised to go higher
US stocks look set to edge higher on Thursday ahead of the latest weekly jobless claims and the US trade balance data.
Futures for the blue-chip Dow Jones Industrial Average, the broader S&P 500 index, and the tech-laden Nasdaq-100 all rose 0.2%.
Investors are also awaiting Friday's always-key monthly non-farm payrolls jobs report for more clues on when and how the Federal Reserve may start tapering its bond purchases. The Fed has signaled that the labor market’s recovery is a factor in its monetary policy decisions.
After ADP private payrolls data missed expectations on Wednesday, the latest weekly jobless claims data will be released at 8.30am ET today providing more pointers to August's monthly jobs number. Economists estimate that jobless claims will hold near coronavirus (COVID-19) pandemic lows in late August.
Meanwhile data on the US trade balance for July, also due at 8.30am, is likely to show that the deficit narrowed as consumers shifted spending towards services and away from goods.
Oil prices were higher on Thursday after the Organization for Petroleum Exporting Countries and its Russia-led allies agreed to continue increasing oil production at a meeting on Wednesday.
On the corporate front, semiconductor and software developer Broadcom Inc. and information technology company Hewlett Packard Enterprise Inc. are scheduled to post earnings after markets close on Thursday.
Five things to watch on Thursday:
At least eight people have died in New York City and New Jersey as the remnants of Hurricane Ida pummeled the Northeast, causing record-breaking rainfall, flash floods and power outages, and prompting authorities to declare states of emergency.
Tesla Inc (NASDAQ:TSLA).’s next-generation Roadster electric car has been delayed until 2023 because of supply chain problems, according to the automaker's chief executive Elon Musk.
Apple Inc (NASDAQ:AAPL). is facing an antitrust challenge in India for allegedly abusing its dominant position in the apps market by forcing developers to use its proprietary in-app purchase system, according to a source and documents seen by Reuters. Apple also further loosened App Store rules on Wednesday, allowing some content companies like Netflix (NASDAQ:NFLX) Inc to provide links to their websites so customers can sign up for paid accounts.
A US judge said on Wednesday he would approve OxyContin maker Purdue Pharma LP’s bankruptcy reorganization plan, clearing a path to resolve thousands of opioid lawsuits and shielding the company's wealthy Sackler family owners from future opioid litigation.
Volkswagen's US unit has agreed to a $42 million settlement covering 1.35 million vehicles that were equipped with potentially dangerous Takata air bag inflators, according to documents filed in US District Court in Miami, Reuters reported.