MARKET SNAPSHOT: Stock Market Edges Higher After Strong Labor Market Data

By Victor Reklaitis, MarketWatch , Ryan Vlastelica Features Dow Jones Newswires

Earnings movers include Palo Alto Networks, Box, HPE

Continue Reading Below

U.S. stocks were slightly higher on Thursday after a positive read on the labor market underlined an aspect of the economy that remains strong, helping the benchmark S&P 500 rebound from a two-day decline.

The Dow Jones Industrial Average rose 19 points to 21,024, a gain of about 0.1%. The S&P 500 was up 5 points, or 0.2%, to 2,417, trading within points of its intraday record. The Nasdaq Composite rose 20 points to 6,218, a rise of 0.3% that put the tech-heavy index near its own record.

All three indexes are coming off a monthly gain in May and are notably higher for 2017, with the Nasdaq up more than 15% year-to-date. The move has raised some concerns about valuation.

"Fundamentals look good, but valuations look rich, and rich valuations need better than good fundamentals, they need very good fundamentals," said Stephen Wood, chief market strategist at Russell Investments.

The latest read on private-sector employment surged past expectations in May (, coming in well above forecasts. However, weekly jobless claims rose more than expected in the latest week (, hitting a five-week high. The releases painted a mixed picture about what could be expected in Friday's highly anticipated nonfarm payroll report.

Continue Reading Below

Read:May hiring gains to reflect warming but not sizzling economy (

"The ADP number came in strong, much stronger than consensus, but there's still some softness in the data that we're seeing overall," Wood said.

Individual movers: Shares in Palo Alto Networks Inc.(PANW) jumped 18% a day after the computer security company late Wednesday posted better-than-expected quarterly results ( Cloud-based storage company Box Inc.(BOX) popped 3.7% after its own earnings report (

See:Free cash flow is great, and AI is next, says Box CEO (

Hewlett Packard Enterprise Co.(HPE) lost 4.5% after the provider of computer servers late Wednesday reported weaker-than-expected earnings (

Check out:Why HPE investors are wondering if they bet on the wrong horse in split (

Ollie's Bargain Outlet Holdings Inc.'s (OLLI) fell 1.2% despite reporting results that beat expectations (

Cable giant Charter Communications Inc.(CHTR) rose 0.3% following news that it rejected a $100 billion buyout offer from Verizon ( Verizon Communications Inc.(VZ) fell 0.3%.

Check out:

On the monetary-policy front, Federal Reserve Gov. Jerome Powell said it would be appropriate ( for the U.S. central bank to gradually raise interest rates if the economy performs as expected. He added that might also be appropriate if the Fed begins reducing the size of its balance sheet this year.

President Donald Trump has said he would announce his decision ( on whether the U.S. will keep its commitments to a Paris climate accord at 3 p.m. Eastern.

See:Trump likely to pull out of Paris climate deal (

Other markets: Oil futures gained, but remained down for the week, after a report late Wednesday from the American Petroleum Institute showed U.S. crude supplies a more-than-expected 8.7 million barrels last week. That sparked hope the official data from the U.S. Energy Information Administration due at 11 a.m. Eastern Time on Thursday also will show a drawdown in inventories.

European stocks were advancing, while Asia markets closed mixed. Gold futures lost ground, and a key dollar index was slightly higher.

(END) Dow Jones Newswires

June 01, 2017 10:07 ET (14:07 GMT)