US Stocks shine on weak job openings data

US stock market recovered early losses to finish choppy session in positive territory on Tuesday, 04 June 2024, on signs of a cooling domestic labor market that buoyed Federal Reserve rate-cut bets.

The Labor Department said job openings fell to 8.059 million in April, the lowest since 2021, from a downwardly revised 8.355 million in March. That lifted Treasuries on Tuesday sending the 10-year yield down six basis points.

The labor market data is the latest in a series of reports indicating cooling U.S. economic growth, including Mondays data showing a slowdown in U.S. manufacturing activity for the second consecutive month in May. Tuesdays data also reinforced speculation that the Federal Reserve will be able to lower interest rates in the coming months.

At closing bell, the Dow Jones Industrial Average index advanced 140.26 points, or 0.36%, to 38,711.29. The S&P500 index added 7.94 points, or 0.15%, to 5,291.34. The tech-heavy Nasdaq Composite index increased by 28.38 points, or 0.17%, to 16,857.05.

Total 6 of 11 S&P500 sectors ended higher along with gain in the S&P500 Index. Real estate and consumer staples sectors were top performers, rising 0.95% and 0.93%, respectively. Material sector was bottom performer, falling 1.22%.

ECONOMIC NEWS: US Factory Orders Climb 0.7% In April- A report released by the Commerce Department on Tuesday showed new orders for U.S. manufactured goods rose by slightly more than expected in the month of April. The Commerce Department said factory orders climbed by 0.7% in April compared to economist estimates for an increase of 0.6%. However, the report also showed the jump in factory orders in March was downwardly revised to 0.7% from the previously reported 1.6%. The slightly bigger than expected increase in factory orders in April came as orders for durable goods rose by 0.6%, while orders for non-durable goods advanced by 0.8%. The Commerce Department also said shipments of manufactured goods jumped by 1.0% in April after rising by 0.4% in March. Inventories of manufactured goods also crept up by 0.1% in April after coming in virtually unchanged in the previous month. With shipments climbing by much more than inventories, the inventories-to-shipments ratio fell to 1.45 in April from 1.47 in March.

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