With traders digesting a slew of new economic data, stocks have shown a lack of direction over the course of early trading on Thursday. The major averages have been bouncing back and forth across the unchanged line.
The major averages are currently turning in a mixed performance, with the Nasdaq posting a modest loss. While the Nasdaq is down 1.83 points or 0.1 percent at 3,398.60, the Dow is up 13.75 points or 0.1 percent at 15,008.98 and the S&P 500 is up 2.14 points or 0.1 percent at 1,614.66.
The choppy trading comes as the largely upbeat batch of data has generated optimism about the economic recovery but raised concerns about the outlook for the Federal Reserve's asset purchase program.
Before the start of trading, the Commerce Department released a report showing slightly stronger than expected retail sales growth in May.
The report said retail sales increased by 0.6 percent in May after edging up by 0.1 percent in April. The sales growth came in just above economist estimates for a 0.5 percent increase.
Excluding a 1.8 percent jump in sales by motor vehicle and parts dealers, retail sales increased by a more modest 0.3 percent in May compared to expectations for 0.4 percent growth.
Meanwhile, the Labor Department released a report showing an unexpected decrease in first-time claims for unemployment benefits in the week ended June 8th.
The Labor Department said initial jobless claims fell to 334,000, a decrease of 12,000 from the previous week's unrevised figure of 346,000. The modest decrease came as a surprise to economists, who had been expecting initial jobless claims to edge up to 350,000.
"Methinks this is a very strange period to be in," said Jennifer Lee, senior economist at BMO Capital. "Stronger economic news is supposed to be good, right?"
"But ahead of next week's FOMC meeting, the market is increasingly concerned that policymakers will signal that they will begin dialing back stimulus although we are of the view that it is still too soon," she added.
Recent comments from Fed officials have suggested that signs of sustained economic improvement may lead the central bank to taper the program within the next few meetings.
While most of the major sectors are showing only modest moves, considerable strength has emerged among steel stocks. The NYSE Arca Steel Index has surged up by 2.2 percent, bouncing off the nearly four-year low set in the previous session.
Commercial real estate stocks are also turning in a strong performance after falling sharply in recent weeks, with the NYSE Arca REIT Index up by 1.3 percent.
In overseas trading, stock markets across the Asia-Pacific region saw substantial weakness during trading on Thursday. Japan's Nikkei 225 Index plummeted by 6.4 percent, while Hong Kong's Hang Seng Index tumbled by 2.2 percent.
Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index has edged up by 0.1 percent, the German DAX Index is down by 0.6 percent and the French CAC 40 Index is just below the unchanged line.
In the bond market, treasuries have moved back to the upside following some recent weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.6 basis points at 2.194 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
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.