Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Wall Street opens in the red despite upbeat jobs figures

% of readers think this story is Fact. Add your two cents.

The main indices on Wall Street were on the back foot in early deals on Thursday despite better than expected US jobs numbers.

Shortly after the opening bell, the Dow Jones Industrial Average was down 0.58% at 34,399 while the S&P 500 dropped 0.61% to 4,182 and the Nasdaq fell 0.73% to 13,655.

The lower start came despite US weekly jobless claims falling below 400,000 for the first time since the start of the pandemic, according to the Department of Labor.

The number of Americans seeking unemployment benefits fell to 385,000 last week, slightly down on the forecasts of a figure of 387,000 and the lowest level since March 14 last year.

This compares to 405,000 the previous week, itself revised down by 1,000.

Earlier, the latest report from payrolls operator ADP showed that 978,000 new private sector jobs were created in May, up from 742,000 the previous month and beating expectations of a figure of 650,000.

Nela Richardson, ADP’s chief economist, said: “Private payrolls showed a marked improvement from recent months and the strongest gain since the early days of the recovery.

“While goods producers grew at a steady pace, it is service providers that accounted for the lion’s share of the gains, far outpacing the monthly average in the last six months. Companies of all sizes experienced an uptick in job growth, reflecting the improving nature of the pandemic and economy.”

What this signals for the non-farm payrolls on Friday, however, is anyone’s guess.

7:45am: Wall Street to start lower

Wall Street is expected to open lower as investors focus on the latest US jobs data due shortly.

Ahead of Friday’s widely watched non-farm payroll numbers – which came in well below forecasts last month with a rise of only 266,000 – come the private payroll figures for May from ADP. They are expected to show an increase of 750,000, up from 742,000 in April. However last time round the survey gave little guidance as to the official figure.

Also due are the weekly jobless claims, which are expected to fall from 406,000 to a new post-pandemic low of 387,000. Deutsche Bank for one however is expecting a rise to 435,000.

So with investors torn between welcoming an economic recovery and worrying about inflation, the Dow Jones Industrial Average is forecast to open 198 points or 0.6% lower while the S&P 500 is set to fall 0.69% and the Nasdaq Composite 0.94%.

Four things to watch for on Thursday:

  • Companies in the earnings diary today include semiconductor and software firm Broadcom Inc (NASDAQ:AVGO), cybersecurity group Crowdstrike Holdings Inc (NASDAQ:CRWD) and athletic apparel retailer Lululemon Athletica Inc (NASDAQ:LULU)
  • Investors may also be keeping an eye on AGMs from NVIDIA Corp (NASDAQ:NVDA) and Netflix Inc (NASDAQ:NFLX) which are due to kick off today
  • Shares in cinema chain and Reddit memestock favourite AMC Entertainment Holdings Inc (NYSE:AMC) may also be in focus to see if the stock can continue its breakneck ascent
  • On the macro front, aside from the jobs data there may also be interest in a number of US PMI readings

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.