Stocks ended Thursday's session with modest gains, as jobless claims fell by more than forecast, although dark clouds from the European financial crisis limited the upside.
The major averages saw some downside in late-session dealing but managed to end the day above the unchanged line. The Dow edged up by 28.23 points or 0.3 percent to end at 10,415.24, the Nasdaq rose by 7.33 points or 0.3 percent to 2,236.20 and the S&P 500 advanced by 5.31 points or 0.5 percent to 1,104.18.
Initial upside in the markets came after data from the Labor Department showed that initial jobless claims fell to 451,000 in the week ended September 4th from the previous week's revised figure of 478,000.
Economists had only been expecting jobless claims to edge down to 470,000 from the 472,000 originally reported for the previous week.
With the bigger than expected decrease, jobless claims fell to their lowest level since falling to a nearly two-year low of 427,000 in the week ended July 7th, although they remain at a relatively high level.
Commenting on the data, Peter Boockvar, equity strategist at Miller Tabak, said, "Labor Day weekend may have had an impact on the seasonal adjustment but we'll have to see next week to what extent."
"Either way though, the market will take a downward move to the lowest since early July in light of the worrisome rise over the past month," he added.
Stocks came off their highs in mid-afternoon trading after Bloomberg reported that Deutsche Bank (DB), Germany's largest bank, is mulling a share offering in order to raise roughly $11 billion in additional capital. The news served as a reminder of the continued turmoil among Europe's financial institutions.
Sector News
Healthcare provider stocks turned in some of the day's strongest performances, resulting in a 2.3 percent advance by the Morgan Stanley Healthcare Provider Index. The upward move lifted the index to a monthly closing high.
Banking, pharmaceutical and tobacco stocks also posted strong gains, with the NYSE Arca Pharmaceutical Index rising by 1.1 percent. With the advance, the index ended the day at its best closing level in more than four months.
On the other hand, gold stocks saw steep losses, dragging the NYSE Arca Gold Bugs Index down by 1.6 percent as the price of December gold settled down $6.60 at $1,250.90 an ounce.
Commercial real estate, railroad and airline stocks also ended lower, although by more moderate margins, further limiting the upward move by the major averages on the day.
Dow Components
JP Morgan Chase (JPM) was the leading percentage gainer in the Dow, rising by 2.5 percent to a fresh monthly high.
AT &T (T) also saw a strong outing, posting a gain of 1.5 percent and ending at an eight-month closing high.
Johnson & Johnson (JNJ), American Express (AXP), Alcoa (AA) and General Electric (GE) also rose by over 1 percent, while McDonald's (MCD) saw a steep loss.
McDonald's fell by 2.3 percent after reporting weaker than expected August sales growth. The drop pulled the stock down from the historic closing high set in the previous session.
Other Markets
Overseas, stock markets in the Asia-Pacific region ended mostly higher on Thursday. Japan's benchmark Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index advanced by 0.8 percent.
The major European markets also saw strong gains. The U.K.'s FTSE 100 Index and the French CAC 40 Index both jumped by 1.2 percent, while the German DAX Index rose by 0.9 percent.
In the bond markets, treasuries ended notably lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 2.761 percent, posting a gain of 10.7 basis points.
Looking Ahead
Economic data will be light on Friday, with only wholesale trade figures on tap.
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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.