Dow, S&P little changed as job growth slows in May

Ashley Carr
June 3, 2017

Payroll processor ADP said Thursday that private companies added 253,000 jobs last month, more than investors expected.

The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 nations, rose 2.41 points or 0.52 percent, to 466.2.

The S&P 500 was up 0.26%, the Dow Jones Industrial Average gained 0.3%, and the Nasdaq rose 0.73%. The S&P 500 also managed a new intraday record before holding just above breakeven, as a 0.8 percent fall in financials capped gains.

Mark Zandi, chief economist for Moody's Analytics which helps produce the report, called job growth "rip-roaring". Yields rise as prices fall. Stock indexes remained at record highs.

The yield on the 10-year Treasury note (http://www.marketwatch.com/story/treasury-yields-decline-after-weaker-than-expected-jobs-report-2017-06-02) fell 4 basis points to 2.17% after the jobs report, declining below its 200-day moving average for the first time since October.

Officer who shot Tamir Rice is fired in unrelated matter
Loehmann was still in his probationary period when he shot Rice, as he had only been on the force for eight months. Garmback, meanwhile, was suspended for 10 days without pay for use of improper tactics while driving to the scene.


The Dow is up 63.90 points, or 0.3 percent. The Nasdaq Composite closed at 6,246.83 for a gain of 48.31 points or 0.78%.

"It's hard to ignore the the US economy added fewer jobs than expected and, more importantly, the number came in below the 12-month average of 181,000", said Sharon Stark, managing director of fixed income strategies at Incapital. Fed fund futures are pricing in a 93.% probability of a rate hike this month, according to the CME FedWatch tool (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).

The Russell 2000 is up 23.14 points, or 1.7 percent.

FIVE STARS: Dollar General rose $3.28, or 4.5 percent, to $76.67 after it reported stronger earnings for the latest quarter than analysts expected. Investors were disappointed by a report showing a slowdown in hiring last month. The euro fell to $1.1225 from $1.1246, and the British pound edged up to $1.2898 from $1.2892.

Brent oil tumbled below $50, heading for a second straight week of losses, on worries that President Donald Trump's decision to abandon a climate pact could spark more crude drilling in the United States, worsening a global glut. Eastman Chemical rose 2.1 percent and Vertex Pharmaceuticals rose 2.5 percent.

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