Dow opens slightly higher after notching record close, S&P 500 is flat

U.S. stocks held steady on Thursday as investors awaited Friday's highly anticipated jobs report.

The Dow Jones Industrial Average added 40 points after reaching a record closing high in the previous session. The S&P 500 was little changed. The Nasdaq Composite dipped 0.5%.

The muted action in futures came despite a better-than-expected reading onjobless claims. First-time claims for unemployment insurance totaled 498,000 for the week ended March 1, hitting a fresh pandemic-era low and better than a Dow Jones estimate of 527,000.

The data came one day before April's jobs report is released on Friday.

"Job growth has been strong and increasing for the past three months. April's employment numbers are expected to show another significant gain, as layoffs were down by one-sixth during the month," noted Brad McMillan, chief investment officer for Commonwealth Financial Network.

PayPal shares jumped 4% in premarket trading to lead tech names after the company posted better-than-expected earnings andsaid revenue last quarter surged 31%.

The Nasdaq Composite posted its fourth straight negative session on Wednesday for its longest daily losing streak since October. The tech-heavy index and S&P 500 are each lower for the week. The Dow is on track to break a two-week losing streak.

However, Etsy tanked by 11% in early trading afterwarning that sales will slowas the pandemic boost wanes.

Shares of Gap, which have been popping in the past month along with other specialty retail as investors bet on a return to more in-person shopping, was higher again, up about 2% in early trading.

During Wednesday's session, the Dow gained 97 points to end at a new closing high. The 30-stock benchmark index also set a new intraday record after rising nearly 200 points at one point.

It's too early to say whether the early gains Thursday will mark a reversal in trend.

"Technology sector earnings momentum relative to the broader market peaked in late May of 2020," said Keith Lerner, chief market strategist at Truist. "Given that we expect the economy to grow well above trend this year and next, value stands to benefit. Indeed, when looking at the value indices, they are dominated by financials and tend to have greater exposure to economically-sensitive sectors that are more leveraged to an economic recovery."

The Russell 1000 Value index has gained 16% this year, while the Russell 1000 Growth index has advanced 5%.

However, he added that concerns still remain in the market. For one, federal stimulus packages have boosted growth, and at some point, the economy will have to return to organic growth.