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Wall Street ekes out gain as weekly jobless claims fall

Reuters2021-05-28

  • Boeing climbs on rival Airbus' strong forecast
  • Nvidia beats forecast but shares dip
  • Kaplan says labor market tighter than realized

NEW YORK, May 27 (Reuters) - U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.

The number of Americans filing new unemployment claims dropped more than expected last week to a 14-month low of 406,000 as pandemic restrictions continue to be lifted, while a separate report showed business spending on equipment picked up speed.

The data helped lift U.S. Treasury yields, with the benchmark 10-year note reaching a high of 1.625% and denting the attractiveness of higher-growth names in areas such as technology while helping those seen as more likely to benefit from an improving economy such as financials and small caps .

Still, the 10-year yield remained within the range it has been in for several days, which served to keep inflation concerns in check and limited the rotation within sectors.

Investors have been closely watching economic data and comments from Federal Reserve officials for signs of runaway inflation and the possibility the central bank may begin to pull back on its massive stimulus measures.

"When you look at the jobless claims that actually shows we're continuing to make progress, if we get a strong jobs report in the next release that's going to provide some support, until then there's uncertainty so I don't think there's a lot of momentum either way," said Brad McMillan, chief investment officer for Commonwealth Financial Network, in Waltham, Mass.

"We've had the Fed come out and say we're going to continue to support things but now we're starting to be a little bit nervous, that's obviously a headwind."

Unofficially, the Dow Jones Industrial Average rose 136.72 points, or 0.4%, to 34,459.77, the S&P 500 gained 4.81 points, or 0.11%, to 4,200.8 and the Nasdaq Composite dropped 1.62 points, or 0.01%, to 13,736.38.

Weighed down by weakness in tech shares, the Nasdaq underperformed the Dow and S&P.

U.S. planemaker Boeing climbed after its European rival Airbus outlined an almost two-fold increase in production, citing a strong recovery in aviation from the COVID-19 pandemic.

Boeing supplier General Electric jumped and the two were the biggest boost to the S&P industrials , the best performing sector on the day.

Investors will now look to the personal consumption expenditure report due on Friday as it is the central bank's preferred inflation measure for its 2% long-term target.

Fed officials have repeatedly maintained in recent days that the central bank is not ready to adjust its monetary support, although some have suggested they are open to begin discussing the reduction of its bond-buying plan. On Thursday, Federal Reserve Bank of Dallas President Robert Kaplan said the labor market is tighter than many realize.

Strategists expect the S&P 500 to end the year at about 4,300, according to a Reuters poll. The benchmark index is currently less than 1% away from its record high of 4,238.04 points.

Nvidia Corp forecast second-quarter revenue above analysts' estimates, but shares fell as the chipmaker could not say for certain how much of its recent revenue rise was driven by the volatile cryptocurrency-mining market.

(Reporting by Chuck Mikolajczak; Additional reporting by Sinéad Carew in New York; Editing by Lisa Shumaker)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment319

  • Meshaarias72
    ·2021-05-28
    Like and comment 
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  • Lowger
    ·2021-05-28
    woooooaw
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    • ratata
      nice
      2021-05-28
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  • the_ed
    ·2021-05-28
    Great news
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    • Lowger
      woooaw
      2021-05-28
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  • Limth
    ·2021-05-28
    Good news
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    • Lowger
      wow
      2021-05-28
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    • MewCat
      good
      2021-05-28
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  • ILFTS
    ·2021-05-28
    Liked and comment please 
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    • Ahpo
      ok
      2021-05-28
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  • Seuna
    ·2021-05-28
    Like and comment pleasw
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    • Ahpo
      ok
      2021-05-28
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    • Lowger
      wow
      2021-05-28
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  • sansCervelle
    ·2021-05-28
    thanks
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    • Seuna
      Like and comment pleasw
      2021-05-28
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  • NewPower
    ·2021-05-28
    In my opinion, now is not the time to buy stockbecause the market correction is still underway. I will be patiently waiting at the sideline since now might be the calm before the storm. Cheers!
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    • LimLS
      hard to predict if a correction is underway or not. time in market often beats timing the market. But if one is already quite vested, waiting to add more based on one conviction on bull/bear is ok.
      2021-05-28
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  • aiyohyun
    ·2021-05-28
    OoooComment and like please
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    • sohjonathan
      Comment back pls
      2021-05-28
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    • Vikkilai
      Ok
      2021-05-28
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    • Vikkilai
      Ok
      2021-05-28
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  • Ryun83
    ·2021-05-28
    Like n comment pls
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    • alvernsim
      Done
      2021-05-28
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    • Vikkilai
      Done
      2021-05-28
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  • bobz
    ·2021-05-28
    d
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    • BLMJ
      A
      2021-05-28
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    • bobz
      good comment
      2021-06-08
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    • bobz
      h
      2021-06-02
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  • darrenlsw
    ·2021-05-28
    Go go higher 
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    • darrenlsw
      OK sure
      2021-05-28
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    • hww1
      respond pls
      2021-05-28
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  • KinKin
    ·2021-05-28
    Pls like & comment. Thank you 
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  • sharenraj
    ·2021-05-28
    Please like and comment 
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  • Kiwii
    ·2021-05-28
    Please like & comment my comments. 
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    • yl2021Replying toSiniS
      666
      2021-05-28
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    • SiniS
      Done, pls help to reply back. Thx
      2021-05-28
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    • yl2021
      comment back
      2021-05-28
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  • szueyann
    ·2021-05-28
    Please like and comment. Thanks
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    • szueyann
      thanks
      2021-05-29
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    • yl2021
      666
      2021-05-28
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  • Matchbox20
    ·2021-05-28
    Good!
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    • SiniS
      Done, pls help to reply back. Thx
      2021-05-28
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    • Kikiooi
      Yes. good sign
      2021-05-28
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    • MrSoh
      Like and comment
      2021-05-28
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  • PanaCota
    ·2021-05-28
    Cayalah
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    • PanaCota
      ok
      2021-05-29
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    • hww1
      pls respond!
      2021-05-28
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  • BBBBBBBBBB
    ·2021-05-28
    Like and comment pls 
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    • ILFTS
      Commented
      2021-05-28
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    • AT2020
      Sane
      2021-05-28
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