U.S. Stocks May See Initial Strength After Stronger Than Expected Jobs Data

(RTTNews) - After ending the previous session mostly higher, stocks are likely to see further upside in early trading on Thursday. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.

Early buying interest may be generated in reaction to a closely watched Labor Department report showing employment in the U.S. increased by more than expected in the month of June.

The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May.

Economists had expected employment to increase by 110,000 jobs compared to the addition of 139,000 jobs originally reported for the previous month.

The report also said the unemployment rate edged down to 4.1 percent in June from 4.2 percent in May. The unemployment rate was expected to inch up to 4.3 percent.

Buying interest may be somewhat subdued, however, as the stronger than expected jobs data is also likely to reduce the changes of a near-term interest rate cut by the Federal Reserve.

Traders may also be reluctant to make significant moves ahead of the Fourth of July holiday on Friday, with the markets set to close earlier than usual later today.

Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of June. The ISM's services PMI is expected to inch up to 50.5 in June from 49.9 in May, with a reading above 50 indicating growth.

The Commerce Department is also due to release its report on new orders for manufactured goods in the month of May. Factory orders are expected to spike by 8.2 percent in May after tumbling by 3.7 percent in April.

Stocks moved mostly higher over the course of the trading session on Wednesday, with the Nasdaq and the S&P 500 moving back to the upside following the pullback seen during Tuesday's trading.

The Nasdaq and the S&P 500 more than offset Tuesday's losses, once again reaching new record closing highs.

The tech-heavy Nasdaq jumped 190.24 points or 0.9 percent to 20,393.13 and the S&P 500 climbed 29.41 points or 0.5 percent to 6,227.42, although the narrower Dow edged down 10.52 points or less than a tenth of a percent to 44,484.42.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's Nikkei 225 Index inched up by 0.1 percent and China's Shanghai Composite Index edged up by 0.2 percent, while Hong Kong's Hang Seng Index fell by 0.6 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index is up by 0.6 percent, the German DAX Index is up by 0.4 percent and the French CAC 40 Index is up by 0.2 percent.

In commodities trading, crude oil futures are edging down $0.03 to $67.42 a barrel after surging $2 to $67.45 a barrel on Wednesday. Meanwhile, after rising $9.90 to $3,359.70 an ounce in the previous session, gold futures are falling $21.60 to $3,338.10 an ounce.

On the currency front, the U.S. dollar is trading at 145.16 yen versus the 143.66 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1731 compared to yesterday's $1.1799.