S&P 500 and Nasdaq Pause Ahead of Friday's Nonfarm Payrolls Report

Barry Adams
06 Jun, 2024
Frankfurt

Stocks lacked direction and hovered near record highs reached in the previous session. 

The S&P 500 index and the Nasdaq Composite meandered ahead of the release of nonfarm payroll data on Friday. 

Investors are hoping that the increase in payroll will moderate, confirming the latest softer increase in private payrolls reported by ADP on Wednesday. 

The moderating labor market conditions are likely to confirm that economic growth is intact and the labor market is strong but not too hot, giving policymakers room to consider a rate cut later in the year. 

Initial weekly jobless claims for the week ended on June 1 increased by 8,000 to 229,000, according to the latest weekly report from the U.S. Labor Department. 

The previous week's level was revised up by 2,000 from 219,000 to 221,000. 

The 4-week moving average was 222,250, a decrease of 750 from the previous week's revised average.

At the same time, continuing claims unexpectedly rose by 2,000 to 1.79 million for the week ending May 25. 

In a separate report, the Bureau of Labor Statistics reported that nonfarm productivity increased by 0.2% in the first quarter, while unit labor costs rose by 0.4%. 

 

U.S. Trade Gap Widened in April 

The U.S. goods and service trade deficit widened in April after imports rose faster than exports, the U.S. Bureau of Economic Analysis reported Thursday. 

Exports edged up 0.8% to $263.7 billion, and imports rose 2.4% to $338.2 billion, resulting in a trade deficit increase of 8.7% to $74.6 billion. 

Goods exports increased $2.2 billion to $172.7 billion, and services exports decreased $0.2 billion to $90.9 billion.

The increase in exports of electric apparatus, semiconductors, electric machinery, and pharmaceutical preparation was offset by a decline in industrial supplies and financial services. 

Imports of goods advanced $8.1 billion to $271.9 billion, and services declined $0.1 billion to $66.3 billion. 

The increase in imports of capital goods, vehicles, computer accessories, telecommunications, and insurance services was offset by a decline in travel services. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,358.77, and the Nasdaq Composite fell 0.01% to 17,176.77.

The yield on 2-year Treasury notes edged lower to 4.75%, 10-year Treasury notes decreased to 4.31%, and 30-year Treasury bonds edged higher to 4.46%.

WTI crude oil increased $0.01 to $74.08 a barrel, and natural gas prices rose 9 cents to $2.84 a thermal unit.

Gold increased by $2.21 to $2,357.08 an ounce, and silver rose 31 cents to $30.33. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.32.

 

U.S. Stock Movers

Lululemon Athletica jumped 3.8% to $319.99 after the athletic apparel retailer reported higher than expected first quarter earnings and sales. 

Five Below declined 15.3% to $112.43 after the discount retailer estimated weaker-than-expected revenue in the current quarter. 

Nvidia Corp. advanced 0.9% to $1,234.28 after the company at the center of the artificial intelligence boom extended this year's gains to over 150% and a one-year surge to over 216%. 

Robinhood Markets increased 3.5% to $22.36 after the online trading company agreed to acquire crypto exchange Bitstamp for $200 million.