Stocks open slightly higher after fall in jobless claims

(Aug 5) Stocks open slightly higher after fall in jobless claims.

Dow industrials up 94 points, or 0.3%. S&P 500 up 0.3% at 4,414.12. Nasdaq Composite up less than 0.1% at 14,784.61. 

Fastly plunges over 23% in morning trading after the company's downside Q3 and full-year guidance due to the widespread outage in June.

The moves in the stocks came after a mostly lower regular session on Wednesday. The Dow dropped more than 300 points, or 0.9%, and closed near its session low. The S&P 500 slipped about 0.5%, while the Nasdaq Composite ticked up 0.1%.

Weekly initial jobless claims came in at385,000 on Thursday,in-line with expectations. Recent earnings and economic data have been strong overall, but some economists worry economic growth and employment gains will taper from here.

The jobless claims data was the last reading before the key July jobs report, which will be released on Friday morning. There is a wide range of estimates from economists and what the report will show, and some metrics for employment gains have disappointed despite a high level of reported job openings.

"Many factors are likely driving worker shortages; concerns about catching the virus, childcare responsibilities, skills mismatches, and generous unemployment insurance benefits," PNC Senior Economist Abbey Omodunbi said in an email. In the second half of the year, "more competition for workers, particularly in the leisure and hospitality sector, will support acceleration in wage growth, boosting household incomes and consumer spending."

The results of an ADP private payroll survey released Wednesday showed again of 330,000 jobs for July,well short of the consensus estimate of 653,000. The Labor Department's official jobs report, which typically has more impact on investors, will be released on Friday. Economists expect the report will show the U.S. added 845,000 in non-farm payrolls in July, about even with the previous month, according to Dow Jones estimates.

The10-year Treasury yieldwas holding steady near 1.8% on Thursday. The yield briefly dipping below 1.13% on Wednesday before bouncing back in late morning trading.

Shares ofRokudropped 6% after the company issued quarterly results.Etsyfell 12% in early trading after the company gave guidance for the current quarter that indicated the pandemic-fueled commerce boommay be coming to an end.

However, earnings season has been strong overall. Goldman Sachs raised its year-end target for the S&P 500 to 4,700, representing 7% upside, in part due to an improving earnings outlook going.

During regular trading Wednesday, shares of Robinhoodsurged 50%, continuing a volatile jump after last week's soft initial public offering. Semiconductor stocks were another bright spot, withNvidiaandAdvanced Micro Devicesrising.