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U.S. stocks mixed in cautious trade, ahead of April jobs report

Published 05/05/2016, 04:47 PM
Updated 05/05/2016, 04:51 PM
The Dow closed fractionally higher on Thursday, while the NASDAQ and S&P fell slightly

Investing.com -- U.S. stocks were mixed on Thursday on a cautious day of trading, as investors looked ahead to a critical monthly jobs report at week's end for further clues on the strength of the economy.

When the Bureau of Labor Statistics (BLS) releases its April jobs report on Friday morning, analysts expect an increase of 200,000 in nonfarm payrolls following gains of 215,000 a month earlier. Economists are also anticipating a slight dip in the unemployment rate by 0.1% to 4.9%. The rate has lingered near multi-year lows over the last several months. More critically, analysts will keep a close eye on average hourly wages, which are expected to tick up by 0.3%, mirroring a considerable 0.3% uptick in March. Even as the U.S. economy has emerged from a prolonged recession, wages have remained stubbornly low since the Financial Crisis.

The Dow Jones Industrial Average gained 9.32 or 0.05% to 17,660.58, bouncing back from sharp losses on Wednesday, as International Business Machines (NYSE:IBM), Walt Disney Company (NYSE:DIS) and The Travelers Companies Inc (NYSE:TRV) provided a boost. The NASDAQ Composite index lost 8.55 or 0.18% to 4,717.09, while the S&P 500 Composite index inched down 0.49 or 0.02% to 2,050.63, remaining flat for the year. On the S&P 500, eight of 10 sectors closed in the red as stocks in the Telecommunications and Basic Materials industries lagged, each falling by more than 0.5%.

The major indices were also bolstered by a 1% gain in global oil prices, after raging wildfires in Alberta limited production and shut down a number of major pipelines in Northwest Canada. The fires led to the evacuation of more than 80,000 people in the province and sent 640,000 barrels of oil offline.

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IBM jumped 2.10 or 1.46% to 146.35, finishing Thursday's session as the top performer on the Dow. It came as the technology giant unveiled plans to make its functioning quantum processor available to the public for free, via the internet. IBM is optimistic the cloud-based computing system will help scientists solve a wide range of problems that are not possible with the high-speed supercomputers that are currently in place. The worst performer was Caterpillar Inc (NYSE:CAT), which fell 1.49 or 2.01% to 72.72, closing as the Dow's biggest laggard for the second straight day.

The top performer on the NASDAQ was Whole Foods Market Inc (NASDAQ:WFM), which surged 1.68 or 5.89% to 30.19. On Wednesday after the close, the natural foods grocer said it produced record sales and operating cash flow during its second quarter, even as its comparable store sales remained weak. The worst performer was Tesla Motors Inc (NASDAQ:TSLA), which plummeted 11.16 or 5.01% to 211.40, after investors displayed skepticism on plans from CEO Elon Musk to ramp up Model 3 production. While announcing first quarter earnings on Wednesday night, Musk outlined a plan to accelerate production of the popular electric vehicle to 500,000 by 2018.

Shares in Fitbit Inc (NYSE:FIT) sunk 3.22 or 18.89% to 13.89 after the wearable device manufacturer lowered its second quarter guidance on Wednesday. Verizon Communications Inc (NYSE:VZ) shares, meanwhile, were flat after the company's Board rejected a host of union-backed shareholder proposals at the company's annual meeting in New Mexico. Approximately 40,000 Verizon workers have been on strike since mid-April amid concerns that the company will outsource their call-center positions overseas.

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On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,598-1,434 margin.

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