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Major averages maintaining modest rise in early afternoon trading

Buying motivation diminished early in the session, but stocks remained largely positive in Thursday afternoon trading. With the upward movement, the key averages have been added to the profits posted in the previous session.

Currently, the major averages hold modest profits. The Dow was up 151.17 points or 0.4 percent at 34,474.22, the Nasdaq was up 28.01 points or 0.2 percent at 13,766.00, and the S & P 500 was up 13.66 points or 0.3 percent at 4,209.65.

The strength of Wall Street is partly Economy After the Ministry of Labor released a report showing weekly unemployment claims, it fell to the lowest level of the pandemic era again.

According to the Ministry of Labor, the first unemployment claims for the week ending May 22 fell to 406,000, down 38,000 from the uncorrected level of 444,000 last week. Economists expected unemployed claims to drop to 425,000.

Unemployment benefits have fallen for the fourth straight week, dropping to the lowest level again since reaching 256,000 in the week ending March 14, 2020.

However, traders still have the upper hand, with bright data added to recent concerns that the Federal Reserve Board is approaching a declining asset purchase.

Traders may pay close attention to Friday’s reading of inflation, which the Fed is said to like. This can have a significant impact on the outlook for monetary policy.

According to another report from the Department of Commerce, orders for durable consumer goods fell unexpectedly in April, mainly due to a sharp drop in orders for transportation equipment.

The report showed that durable consumer goods orders fell 1.3% in April after a 1.3% surge, which was revised upward in March.

Economists, who expected durable consumer goods orders to increase 0.7% compared to the 0.8% increase reported last month, were surprised by the pullback.

However, durable consumer goods orders surged 3.2% in March and then surged 1.0% in April, except for transport equipment orders, which fell 6.7%. Economists expected 0.8% growth.

The Commerce Department also released a report showing that the pace of US economic growth in the first quarter has not been revised from preliminary estimates.

The report shows that real gross domestic product surged 6.4% in the first quarter, unchanged from last month’s estimate. Economists expected GDP growth to be moderately revised upwards to 6.5%.

Meanwhile, pending home sales in the United States fell to unexpectedly low levels in almost a year in April, according to a report released by the National Association of Real Estate Agents.

Sector news

Steel stocks continue to show considerable strength the day after news of the first meeting between US Trade Representative Katherine Tai and China’s Deputy Prime Minister Liu He.

A statement from the Chinese Ministry of Commerce described the virtual meeting as “candid, practical and constructive,” but did not reveal whether the debate included tariff cuts during the Trump era.

Reflecting the strength of the steel sector, the NYSE Arca Steel Index rose 2.7%, further above the nearly-month closing price set on Tuesday.

Oil services stocks are also showing considerable strength, reflecting the 1.4% rise in the Philadelphia Oil Services Index.

The strength of the oil services sector is that crude oil prices have risen again, with crude oil delivered in July falling to $ 65.37 and then rising $ 0.33 to $ 66.54.

Networking stocks continued to perform well, with the NYSE Arca Networking Index rising 1.4% to reach its highest daytime level in more than three months.

Banking, transportation and telecommunications stocks are also showing remarkable power on the day, but most of the other major sectors are showing modest movements.

Other markets

In foreign trade, stocks market Various performances were seen throughout the Asia Pacific region during Thursday’s trading. Japan’s Nikkei 225 Index fell 0.3% and China’s Shanghai Composite Index rose 0.4%.

The major European markets also ended the day mixed. France’s CAC 40 index rose 0.7%, the UK’s FTSE 100 index fell 0.1%, and Germany’s DAX index fell 0.3%.

In the bond market, government bonds have fallen further after falling slightly below the previous session. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, rose 4.3 basis points to 1.617%.

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Major averages maintaining modest rise in early afternoon trading

Source link Major averages maintaining modest rise in early afternoon trading

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