U.S. stocks are rising Thursday and climbing back toward record heights as Wall Street makes its final moves ahead of a jobs report that could shake the market on Friday. The S&P 500 was up 0.7% in early trading and sitting just below its all-time high. The Dow Jones Industrial Average was up 250 points, or 0.6%, and the Nasdaq composite was 0.9% higher.
Quick Read
- Market Uptrend: U.S. stocks are on the rise, with the S&P 500 nearing its all-time high, indicating positive momentum ahead of an anticipated jobs report.
- Dow and Nasdaq Performance: Both the Dow Jones Industrial Average and the Nasdaq composite showed significant early gains, contributing to the overall market upswing.
- Notable Company Movements: Conagra Brands and Levi Strauss experienced notable stock increases following better-than-expected quarterly results, while Lamb Weston faced a decline due to operational challenges.
- Weekly Market Outlook: Despite a recent dip due to economic data influencing Federal Reserve rate expectations, the S&P 500’s weekly loss was minimized by the current gains.
- Interest Rate Speculations: Market dynamics have been influenced by anticipations of Federal Reserve rate cuts, with recent economic indicators and Fed Chair Jerome Powell’s statements affecting these expectations.
- Employment Data: Recent reports showing a slight increase in unemployment claims are being closely watched, as they may impact inflation and Fed policies.
- Upcoming Jobs Report: The focus is on the forthcoming U.S. employment report, which could provide insights into the labor market’s direction and its implications for inflation and economic policy.
- Bond Market Stability: Treasury yields exhibited some steadiness after the jobless claims report, with a slight decrease in the 10-year Treasury yield and the two-year yield remaining stable.
- Global Market Trends: Mixed performances were observed in European markets, with Asian markets generally on the rise, despite trading closures in Taiwan and China due to a holiday and recent earthquake impacts.
The Associated Press has the story:
Wall Street rises toward records as it prepares for Friday’s jobs report
Newslooks- NEW YORK (AP) —
U.S. stocks are rising Thursday and climbing back toward record heights as Wall Street makes its final moves ahead of a jobs report that could shake the market on Friday. The S&P 500 was up 0.7% in early trading and sitting just below its all-time high. The Dow Jones Industrial Average was up 250 points, or 0.6%, and the Nasdaq composite was 0.9% higher.
Conagra Brands climbed 4.1% after the company behind such food brands as Birds Eye and Duncan Hines reported a milder drop in revenue for the latest quarter than analysts expected. It also delivered a better profit than forecast.
Levi Strauss jumped 16.3% after its latest quarterly results likewise topped expectations. It also slightly raised its forecast for profit over its full fiscal year as it shifts to selling jeans directly to consumers.
They helped offset a 12.8% drop for Lamb Weston, a supplier of frozen potato products that said a transition to a new planning system hurt its ability to fill customer orders. It said the impact from the transition has likely passed, but it lowered its sales and profit forecast for the year.
The stock market’s gains trimmed the S&P 500’s loss for the week to 0.1%. It had sunk from its record earlier this week after surprisingly strong data on the U.S. economy raised worries that the Federal Reserve may not deliver as many cuts to interest rates this year as it’s hinted.
One of the big reason the U.S. stock market stormed more than 20% higher from November through March was the expectation that the Fed would cut its main interest rate several times. But Fed officials have said they need to see additional proof inflation is heading down toward its 2% target before acting, a message Chair Jerome Powell reiterated on Wednesday.
A report on Thursday may have offered some encouraging signals. It showed slightly more U.S. workers applied for unemployment benefits last week, though the number remains low compared with historical standards.
Wall Street is looking for the job market to cool enough to remove upward pressure on inflation, but not so much that it throws too many people out of work and causes a recession.
That’s raised the anticipation for a report coming Friday, where the U.S. government will show how much hiring happened across the country last month. Economists expect it to show a cooldown in March from February.
Treasury yields were holding relatively steady in the bond market and gave up earlier gains following the release of the jobless claims report.
The yield on the 10-year Treasury eased to 4.32% from 4.35% late Wednesday. The two-year yield, which moves more on expectations for the Fed, was holding steady at 4.67%, where it was late Wednesday.
Stronger-than-expected reports on the economy earlier this week, including a surprise return to growth for manufacturing, had sent Treasury yields spurting higher.
In stock markets abroad, indexes were mixed in Europe after rising in much of Asia. .
Analysts say Taiwan Semiconductor Manufacturing Co’s facilities may get quicker-than-expected relief — easing concerns about production halts — after a powerful earthquake struck Wednesday. Trading was closed in Taiwan, as well as in China, for a national holiday.
