Wall Street up as jobs data boosts rates hope
US stocks ended a shade higher on Tuesday following softer-than-expected labor market data that reaffirmed expectations of an interest rate cut by the Federal Reserve. Data on Tuesday showed that US job openings fell to their lowest level in more than three years in April, signaling an easing in labour market tightness that supported a Fed rate cut this year. The US Treasury yields slipped following the report. Wall Street's main indexes gained ground after paring earlier loses. Equities in real estate and consumer staples sectors advanced ahead of others, while materials and energy stocks were the biggest losers. The labour market data was the latest in a string of recent reports that pointed to cooling US economic growth. Data on Monday showed that US manufacturing activity had slowed for the second straight month in May. "What we've seen in the data so far this week is that it's been relatively weak, starting with manufacturing PMI and job openings today," said James St. Aubin, chief investment officer at Sierra Mutual Funds in Santa Monica, California. "That has had a total effect of helping the rally in the bond market; but for the stock market, it's a double-edged sword because they're looking for a rate cut announcement, which has a rising probability with weaker data," St. Aubin added. The Dow Jones Industrial Average rose 0.36 percent, to 38,711, the S&P 500 gained 0.15 percent, to 5,291 and the Nasdaq Composite gained 0.17 percent, to 16,857. Megacap technology stocks, including Amazon.com, Alphabet, Nvidia and Microsoft, ended higher after losing ground early in the session. Oil giants Exxon Mobil and Chevron fell 1.6 percent and 0.8 percent, respectively, as demand concerns weighed on crude prices. Bath & Body Works slumped 12.8 percent after a lower revision to its quarterly profit forecast. Axos Financial dropped after Hindenburg Research disclosed a short position in the lender. (Reuters)