The stock market strengthened at midday as the Nasdaq composite jumped more than 1%. An estimate of job growth came in well below forecasts.
The S&P 500 reversed higher 0.7% while the Nasdaq composite was up a meaty 1.4%. The Dow Jones Industrial Average climbed 0.3%. Indexes were near session highs at midday.
Microsoft (MSFT), a big component of all three major indexes, fell 2% after the software company cut its current-quarter profit and revenue estimate, citing foreign exchange factors. The stock pared a larger opening loss.
Volume fell on the NYSE and Nasdaq compared to the same time on Wednesday.
The Innovator IBD 50 ETF (FFTY) bounced 0.8%.
US Stock Market Today Overview
|Index||Symbol||Stories||Gain / Loss||% Change|
|S&P 500||(0S & P5)||4130.08||+28.85||+0.70|
Last Update: 11:50 AM ET 6/2/2022
The Energy Select Sector SPDR (XLE) ETF rose 0.2% and oil prices climbed despite the fact that OPEC and other major oil producers agreed to increase oil production by 648,000 barrels a day in July and August, a larger boost than expected.
The price of US crude oil remained firm, up 0.5% to $ 115.80 a barrel. In the oil pipeline industry, Pembina Pipeline (PBA) rose above the 41.31 buy point of a flat base. Volume was light, although the relative strength line is at new highs.
ADP Payroll Estimate Misses Views
In economic reports, payroll services firm ADP estimated a gain of 128,000 jobs in May. That’s well below the Econoday consensus estimate of 240,000 and below the prior month’s increase of 202,000.
The ADP report could foreshadow Friday’s Labor Department report on May employment growth. The Econoday consensus estimate of nonfarm payrolls is an increase of 325,000 with an unemployment rate of 3.5%. The May job numbers are expected to drop from April’s 428,000 increase.
In another labor market report, jobless claims fell to 200,000 from a revised 211,000 the previous week. Economists polled by Econoday had forecast 210,000 first-time claims.
The yield on the 10-year Treasury note was nearly unchanged at 2.92%.
Earnings reports caused some of the morning’s higher price moves in the stock market.
Veeva Systems (VEEV) jumped nearly 13%, headed for its best day since a 14.7% gain on May 30, 2019, according to Dow Jones Market Data. The medical software company beat April-quarter estimates and gave bullish guidance for the full fiscal year. The stock last week broke a seven-week losing streak.
In the semiconductor sector, Semtech (SMTC) reversed higher after the chipmaker beat estimates for its January-ended quarter. The company also forecast higher-than-expected earnings.
Price, Chewy, Rivian Among Stock Market Movers
Price (CIEN) slid 4.5% after the optical communications equipment maker gave a mixed January-quarter report. Earnings topped estimates but revenue missed expectations, and revenue guidance was below estimates.
Chewy (CHWY) soared 18.5% on earnings that topped expectations and a full-year outlook that calmed investors. The online pet products retailer’s stock is trying to bottom out from a severe 15-month contraction.
Rivian (RIVN) rose 5.5% though it remained near record lows. The stock climbed even though a DA Davidson analyst initiated coverage of the electric-pickup-truck company with a sell rating and 24 price target. The analyst believes negative headlines will hinder the brand, Barron’s reported.
Meta Platforms (FB) rose 3% at midday, a day after Sheryl Sandberg said she will be leaving her job as chief operating officer.
Asia stocks were mixed, with the Nikkei 225 down 0.2% in Tokyo. In China, where a massive Covid lockdown is ending, the Shanghai composite climbed 0.4% but the Hong Kong Hang Seng fell 1%. KraneShares China Internet ETF (KWEB) vaulted 5% at midday, to the highest price in nearly two months.
YOU MIGHT ALSO LIKE:
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
MarketSmith’s Tools Can Help The Individual Investor