Stock showed a notable move to the upside at the start of trading on Thursday, with traders reacting positively to a bigger than expected drop in weekly jobless claims. The major averages have all moved firmly into positive territory after ending the previous session in the red.
The initial strength comes after the Labor Department said that initial jobless claims showed a modest decrease in the week ended July 24th after showing a notable increase in the previous week. Despite the drop, jobless claims remain at relatively high levels.
The report showed that jobless claims dropped to 457,000 from the previous week's revised figure of 468,000. Economists had been expecting jobless claims to edge down to 460,000 from the 464,000 originally reported for the previous week.
However, Peter Boockvar, equity strategist at Miller Tabak, said, "GM not shutting auto plants as is typical this time of the year is still a distortion but it is surprising that claims aren't lower because of it and thus current levels still remain a concern at this stage of an economic recovery."
In earnings news, Exxon Mobil Corp. (XOM) reported second-quarter net income of $1.60 per share, topping estimates that called for $1.47 per share for the period. Total revenues rose to $92.49 billion but fell short of the $98.49 billion forecast for the quarter.
Colgate-Palmolive Co. (CL) also revealed its financial results for the second quarter, including earnings of $1.17 per share compared to estimates for $1.16 per share. Sales for the quarter were $3.81 billion, up from $3.74 billion in the prior year quarter but short of estimates for $3.94 billion.
Motorola Inc. (MOT) reported adjusted second-quarter earnings of $0.09 per share, just above Wall Street estimates for $0.08 per share. Net sales for the quarter came in at$5.414 billion, which beat forecasts for $5.19 billion for the quarter.
Brokerage stocks are seeing considerable strength in early trading, with Ameriprise (AMP) leading the way higher after reporting strong second quarter earnings growth. Notable early strength has also emerged among oil, housing, and healthcare stocks.
The major averages have not seen much follow-through on their initial upward, but they are holding onto strong gains. The Dow is up 75.61 points or 0.7 percent at 10,573.49, the Nasdaq is up 13.99 points or 0.6 percent at 2,278.55 and the S&P 500 is up 8.49 points or 0.7 percent at 1,114.62.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.