Wall Street stocks end slightly higher as weak jobs data supports rate cut
Axos Financial drops after Hindenburg Research shorts stock
U.S. 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 U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supported a Fed rate cut this year. The U.S. 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 labor market data was the latest in a string of recent reports that pointed to cooling U.S. economic growth. Data on Monday showed that U.S. 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.
Market expectations for a September rate reduction now stand around 65%, versus below 50% last week, according to the CME's FedWatch tool. The closely
