After showing a substantial move to the downside in recent sessions, stocks are regaining some ground during trading on Thursday. The rebound comes as traders have gone bargain hunting despite the release of another disappointing jobs report.
The major averages are currently posting strong gains, just off highs for the session. The Dow is up 117.95 points or 1 percent at 12,166.89, the Nasdaq is up 11.11 points or 0.4 percent at 2,686.49 and the S&P 500 is up 11.89 points or 0.9 percent at 1,291.45.
While the Labor Department released a report before the start of trading showing an unexpected uptick in initial jobless claims in the week ended June 4th, traders have shrugged off the data as already being priced into the markets following recent weakness.
The report showed that jobless claims edged up to 427,000 from the previous week's revised figure of 426,000, while economists had expected claims to slip to 418,000 from the 422,000 originally reported for the previous week.
Meanwhile, a separate report from the Commerce Department has generated some positive sentiment, with the report showing that the U.S. trade deficit unexpectedly narrowed in the month of April.
The Commerce Department said that the U.S. trade deficit narrowed to $43.7 billion in April from a revised $46.8 billion in March. Economists had expected the trade deficit to widen to $49.0 billion from the $48.2 billion originally reported for the previous month.
The unexpectedly narrower deficit was largely due to a sharp drop in imports from Japan due to supply disruptions caused by the recent earthquake.
While the narrower trade deficit for April may lead economists to raise their estimates for second quarter GDP growth, Paul Dales, Senior U.S. Economist at Capital Economics, said the drop in the deficit will eventually be reversed as the temporary effects caused by disruptions from Japan's earthquake fade.
In corporate news, shares of Texas Instruments (TXN) have turned higher over the course of the trading session even though the chip maker lowered its second quarter guidance. The company attributed the reduced guidance to weak demand from a single customer.
Texas Instruments is currently up by 0.8 percent after hitting its worst intraday level in nearly three months earlier in the day.
Sector News
Health insurance stocks have shown a strong move to the upside on the day, driving the Morgan Stanley Healthcare Payor Index up by 2.2 percent. With the gain, the index is climbing further off the one-month closing low that it set on Monday.
The considerable strength in the health insurance sector may be partly due to reports that a three-judge panel of the 11th U.S. Circuit Court of Appeals appeared sympathetic to claims that the individual mandate in the health care reform law is unconstitutional.
Significant strength has also emerged among gold stocks, with the NYSE Arca Gold Bugs Index up by 2.2 percent after ending the previous session at a four-month closing low. The strength in the sector comes as gold for August delivery has risen $9.70 to $1,548.40 an ounce.
Oil service, healthcare provider, and banking stocks are also posting strong gains, partly offsetting their recent loss. Reflecting the strength in the banking sector, the KBW Bank Index is up by 1.3 percent, bouncing off a six-month closing low.
Meanwhile, commercial real estate stocks have come under pressure over the course of the trading session, dragging the Morgan Stanley REIT Index down by 1 percent. Earlier in the session, the index hit it worst intraday level in well over a month.
Other Markets
In overseas trading, stocks markets in the Asia-Pacific region closed mostly lower on Thursday, although Japan's Nikkei 225 Index bucked the downtrend once again, edging up by 0.2 percent. Hong Kong's Hang Seng dipped by 0.2 percent, while China's Shanghai Composite Index plunged by 1.7 percent.
Meanwhile, the major European markets all moved to the upside over the course of the trading day. The U.K.'s FTSE 100 Index rose by 0.8 percent, while the French CAC 40 Index and the German DAX Index advanced by 1.1 percent and 1.4 percent, respectively.
In the bond market, treasuries have pulled back near the unchanged line after seeing modest strength earlier in the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.968 percent.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.