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U.S. stocks ended higher on Tuesday buoyed by softer-than-expected jobs data, which fueled hopes of rate cuts by the Federal Reserve later this year. All three major indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 140.26 points to close at 38,711.29. Notably, 21 components of the 30-stock index ended in positive territory, while nine finished in negative zone. The major loser of the blue-chip index was Honeywell International Inc. (HON - Free Report) , after advancing 2.4%. Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq climbed 28.38 points or 0.2% to close at 16,857.05.
The S&P 500 gained 0.2% or 7.94 points to end at 5,291.34. Among the 11 broad sectors of the benchmark, six ended in positive territory. The Real Estate Select Sector SPDR (XLRE), the Consumer Staples Select Sector SPDR (XLP), the Communication Services Select Sector SPDR (XLC) and the Health Care Select Sector SPDR (XLV) rose 1%, 0.9%, 0.4% and 0.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 0.4% to 13.16. On Tuesday, 10.6 billion shares were traded, lower than the 20-session average of 12.6 billion. The S&P 500 posted 19 new 52-week highs and six new 52-week lows. The Nasdaq Composite registered 40 new 52-week highs and 134 new 52-week lows.
Job Openings Fall, Fueling Rate Cut Speculation
In April, there was a decrease in job openings in the United States, suggesting a softening labor market that could help the Federal Reserve control inflation. Data from the Bureau of Labor Statistics reported a drop of 296,000 job openings totaling 8.059 million, below the expected 8.34 million and the lowest since February 2021.
The March metric was revised down to 8.35 million from the initially reported 8.48 million. Most of the industries experienced decreases in job openings except for services, private education, retail, finance, insurance and transportation.
Federal Reserve officials are anticipated to keep the interest rate within the range of 5.25% to 5.50%, considering a rate cut based on progress toward achieving the 2% inflation target. Market participants are eagerly awaiting the May jobs report, set for release on Friday, as it is expected to provide further insights into the unemployment rate. There is speculation in the market about an interest rate reduction in September and another cut by December.
Economic Data
New orders for manufactured goods increased by 0.7% in April, in line with consensus estimates. The metric for March was also revised downward to a decline of 0.7% from an increase of 1.6% reported earlier. New orders for manufactured durable goods in April, were up 0.6% to $283.9 billion. New orders for manufactured nondurable goods increased by 0.8% to $304.3 billion.
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Stock Market News for June 5, 2024
Market News
U.S. stocks ended higher on Tuesday buoyed by softer-than-expected jobs data, which fueled hopes of rate cuts by the Federal Reserve later this year. All three major indexes ended in positive territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4% or 140.26 points to close at 38,711.29. Notably, 21 components of the 30-stock index ended in positive territory, while nine finished in negative zone. The major loser of the blue-chip index was Honeywell International Inc. (HON - Free Report) , after advancing 2.4%. Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq climbed 28.38 points or 0.2% to close at 16,857.05.
The S&P 500 gained 0.2% or 7.94 points to end at 5,291.34. Among the 11 broad sectors of the benchmark, six ended in positive territory. The Real Estate Select Sector SPDR (XLRE), the Consumer Staples Select Sector SPDR (XLP), the Communication Services Select Sector SPDR (XLC) and the Health Care Select Sector SPDR (XLV) rose 1%, 0.9%, 0.4% and 0.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 0.4% to 13.16. On Tuesday, 10.6 billion shares were traded, lower than the 20-session average of 12.6 billion. The S&P 500 posted 19 new 52-week highs and six new 52-week lows. The Nasdaq Composite registered 40 new 52-week highs and 134 new 52-week lows.
Job Openings Fall, Fueling Rate Cut Speculation
In April, there was a decrease in job openings in the United States, suggesting a softening labor market that could help the Federal Reserve control inflation. Data from the Bureau of Labor Statistics reported a drop of 296,000 job openings totaling 8.059 million, below the expected 8.34 million and the lowest since February 2021.
The March metric was revised down to 8.35 million from the initially reported 8.48 million. Most of the industries experienced decreases in job openings except for services, private education, retail, finance, insurance and transportation.
Federal Reserve officials are anticipated to keep the interest rate within the range of 5.25% to 5.50%, considering a rate cut based on progress toward achieving the 2% inflation target. Market participants are eagerly awaiting the May jobs report, set for release on Friday, as it is expected to provide further insights into the unemployment rate. There is speculation in the market about an interest rate reduction in September and another cut by December.
Economic Data
New orders for manufactured goods increased by 0.7% in April, in line with consensus estimates. The metric for March was also revised downward to a decline of 0.7% from an increase of 1.6% reported earlier. New orders for manufactured durable goods in April, were up 0.6% to $283.9 billion. New orders for manufactured nondurable goods increased by 0.8% to $304.3 billion.