Dow Jones: 12,248.55 (-41.59) SP 500: 1,312.94 (-1.61) Nasdaq: 2,773.31 (+4.12)STOCKS ENDED a volatile trading day mostly flat yesterday as investors were reluctant to make bets a day before a critical labour market report that could magnify fears the economy is slowing.
Early selling picked up after the SP 500 broke through its May low of 1,311.08, though news of progress on a new debt plan for Greece sparked a rebound.
Still, the three major US stock indices have been trending downward and investors are worried about more losses if economic figures disappoint.
“It would take a number way outside the expectation tomorrow to give us another negative shock, but because of the pervasiveness of weak data, investors will need to see a package of stronger data to move us up, and that’s unlikely for at least a couple of months,” said Christopher Sheldon, the Boston-based director of investment strategy at BNY Mellon Wealth Management, who helps oversee $166 billion.
Today’s non-farm payroll report is expected to show 150,000 jobs were added in May, according to a Thomson Reuters poll of economists.
Wednesday’s weak reading by ADP on private payroll growth prompted many economists to scale back forecasts, sparking the stock market’s worst day in nearly a year.
Another decline could open the window to a move back to the April low at 1,294, and the March lows near 1,250 to 1,260, the index’s 200-day moving average.
Bank stocks stabilised after falling on news that Goldman Sachs was subpoenaed by New York prosecutors seeking information on its role leading into the global financial crisis.
Goldman’s stock fell 1.3 per cent to $134.38, while the KBW Banks Index rose 0.2 per cent after falling earlier.
Education stocks rallied on heavy volume after US officials relaxed rules that could have cut off tuition aid to programs run by for-profit colleges.
DeVry and Apollo Group were the top two gainers in the SP consumer discretionary sector. DeVry shot up 14.6 per cent to $61.86, while Apollo surged 11.1 per cent to $46.87.
Initial jobless claims slipped 6,000 to a seasonally adjusted 422,000 in the latest week, while economists polled by Reuters had forecast 415,000. – (Reuters)
