Stocks Slumped at the Open on Tepid Jobs Data

U.S. stocks slumped at the open on Thursday after data showed U.S. private employers hired fewer workers than expected in June and applications for unemployment benefits last week increased for a third straight week. The Dow Jones Industrial Average lately fell 99.29 points, or 0.46%, to 21,378.88. The S&P 500 slipped 13.49 points, or 0.55%, to 2,419.05. The Nasdaq Composite declined 49.76 points, or 0.81%, to 6,101.10.

Oil prices rallied on Thursday, after industry data showed U.S. stockpiles had fallen much more than expected last week. Crude oil for August delivery jumped 63 cents, or 1.4%, to $45.76 a barrel. Brent oil for September rose 61 cents, or 1.3%, to $48.40 a barrel.

The ADP National Employment Report showed on Thursday that private sector payrolls increased by 158,000 jobs last month,
stepping down from the 230,000 positions created in May and below economists’ expectations for a gain of 185,000.

The number of Americans who applied for unemployment benefits rose slightly at the end of June but remained near the lowest level in years. Initial jobless claims in the period running from June 25 to July 1 increased 4,000 to a seasonally adjusted 248,000, the government said Thursday.

The U.S. trade deficit fell in May as exports increased to their highest level in just over two years, but trade could still weigh on economic growth in the second quarter. The Commerce Department said on Thursday the trade gap decreased 2.3 percent to $46.5 billion.

Costco Wholesale Corp. (COST) reported June sales of $12.17 billion, up 7% from $11.33 billion the year before. Same-store sales for the five weeks ending July 2 were up 6% in total, and 6.5% in the U.S.