Dow finally ends up greater than 100 factors larger on the day on strong job information, a dip in Boeing inventory

Traders working on the New York Stock Exchange (NYSE) on May 19, 2021.

NYSE

US stocks rose Thursday as investors digested more than expected job data.

The Dow Jones Industrial Average jumped 150 points. The S&P 500 rose 0.3% and the Nasdaq Composite traded near the flatline. Boeing shares rose 4% on optimism about an economic recovery.

However, it looks like gains for the overall market will be limited as investors rotate into cyclical stocks to brighten technology stocks. Microsoft, Netflix and Amazon are all in the red.

Initial jobless claims fell to 406,000 and hit a new pandemic low and much less than expected, the Labor Department reported Thursday. Economists polled by Dow Jones expected a total of 425,000 Americans to apply for unemployment benefits in the week ending May 22.

“The pressure on unemployment claims is easing and this week’s numbers mark a pandemic low,” said Ali Jaffari, head of North American capital markets at Validus Risk Management. “As the US economy progresses with its vaccination program and reopening measures, employment and labor force participation are expected to increase in the coming months.”

In a separate report, the trade department left its original estimate of gross domestic product unchanged in the first quarter at 6.4%.

Snowflake stocks fell 4% after the data analytics software company reported growing losses. Nvidia shares fell slightly, despite the chip giant’s earnings and sales exceeding Wall Street’s expectations in the first quarter. Sales increased by 88% compared to the previous year.

Meme stocks, which rose this week amid a revival in speculative trading, rose again on Thursday. GameStop was last trading at 1%. AMC Entertainment erased previous profits and gained another 10%.

Ford was back up and inventory increased nearly 6% after upgrading from RBC. The stock rose 8% on Wednesday after unveiling its electric vehicle strategy.

On Thursday, Senate Republicans unveiled their $ 928 billion infrastructure offering for President Joe Biden’s $ 1.7 trillion proposal. Republicans again denied Biden’s request to raise corporate taxes, claiming they could cover infrastructure costs with funds already allocated by Congress or with transportation fees.

Treasury Secretary Janet Yellen urged Congressmen to increase their spending, saying that inflation-adjusted spending has stagnated for eleven years.

Thursday’s moves followed a relatively quiet session on Wall Street. The S&P 500 posted a 0.2% gain in light trading, helped by gains in stocks linked to the economic reopening, including airlines and cruise lines. The blue-chip Dow ended Wednesday’s session barely changed, while the tech-heavy Nasdaq Composite gained 0.6%.

Trading is expected to be muted before Memorial Day weekend.

“Equity markets are calm as investors continue to look to the Fed’s next move,” said Mark Hackett, director of investment research at Nationwide. “Low volatility and trading volume often occur during the week leading up to a public holiday.”