S&P 500 and Nasdaq Hold Near Record Highs, Private Payrolls Growth Slowed In June

Barry Adams
03 Jul, 2024
New York City

Benchmark indexes flatlined a day after the S&P 500 index and the Nasdaq Composite advanced to new record highs. 

Two widely followed market indexes hovered near record highs as investors bid up mega-cap tech stocks fueled by the artificial intelligence craze. 

Market participants are worried that the nine-weeklong market gain is based on a narrow list of stocks. 

Moreover, investors are also concerned that high valuations may not be sustainable in the second half if corporate earnings fail to meet investor expectations. 

Initial jobless claims in the previous week rose more than expected, from 4,000 to 238,000, and continuing claims increased by 26,000 to 1.858 million in the earlier week, the U.S. Department of Labor said in its weekly update on Wednesday. 

Stock market trading volume is likely to be light, and the New York Stock Exchange is set to close early at 1:00 p.m. ET. 

The NYSE and other financial markets will be closed on Thursday to celebrate Independence Day. 

 

Private Payroll Growth Slows in June

Private payrolls expanded by 150,000 in June, lower than market expectations and the lowest since January, a report by ADP showed on Wednesday. 

The payroll increase slowed from the upwardly revised 157,000 in May. 

The service sector added 136,000 jobs, and the goods-producing sector created 14,000 jobs. 

The leisure and hospitality sector added 63,000, professional and business services 25,000, trade, transportation, and utilities 15,000, and financial services 11,000. 

Meanwhile, information services providers cut jobs by 3,000. 

In the goods-producing sector, construction added 27,000 jobs, but natural resources and mining shed 8,000 and manufacturing cut 5,000 jobs, respectively. 

"Job growth has been solid but not broad-based. Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month," said Nela Richardson, chief economist at ADP. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,513.95, and the Nasdaq Composite rose 0.1% to 18,041.26. 

The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes increased to 4.43%, and 30-year Treasury bonds edged higher to 4.60%.

WTI crude oil increased $0.13 to $82.93 a barrel, and natural gas prices fell 0.1 cents to $2.43 a thermal unit.

Gold decreased by $15.81 to $2,345.98 an ounce, and silver rose 71 cents to $30.28. 

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.62.

 

U.S. Stock Movers

Constellation Brands gained 2.8% to $266.24, and the alcoholic beverage distributor reported better-than-expected quarterly results. 

Tesla Inc. advanced 2.4% to $236.02 and extended the previous session's gain of 10%. 

On Tuesday, Tesla said it sold 443,956 vehicles in the June quarter, 4.8% lower than a year ago, which helped with incentives and price cuts. 

Paramount Global jumped 13.5% to $12.13 after media reports suggested that Skydance Media had reached a preliminary agreement to acquire the controlling shareholder, National Amusements. 

The news of the deal was first reported by The New York Times and the Wall Street Journal.