Investing.com -- U.S. stocks traded in a mixed fashion Thursday as investors digested the latest jobs data, which pointing to lingering resilience in the labor market.
By 09:45 ET (14:45 GMT), the Dow Jones Industrial Average was up 100 points, or 0.3%, the S&P 500 traded 2 points, or 0.1%, higher, while the NASDAQ Composite dropped 45 points, or 0.3%.
Labor market shows resilience
Data released earlier Thursday showed that U.S. private employers added far more roles than expected in December, pointing to lingering resilience in the labor market that may impact how Federal Reserve policymakers approach potential interest rate reductions this year.
Private payrolls came in at 164,000 last month, rising from a downwardly revised mark of 101,000 in November, according to data from payrolls processor ADP (NASDAQ:ADP). Economists had predicted a reading of 115,000.
While the strength of the labor market could cause the Fed to think twice about cutting interest rates early in 2024, the data also showed that pay growth, an important contributor to overall inflation, eased to 5.4% from a rate of 5.6% a month earlier, extending a deceleration that started in September 2022.
These figures will serve as a precursor to the publication of the all-important December nonfarm payrolls report on Friday, which could drive risk sentiment for the immediate future.
Walgreens slashes its dividend
In the corporate sector, Walgreens Boots Alliance (NASDAQ:WBA) stock slumped over 10% after the drugstore chain slashed its quarterly dividend by 48%, in a move Chief Executive Officer Tim Wentworth said was necessary to "strengthen our long-term balance sheet and cash position."
Ford (NYSE:F) stock fell 0.5% after the auto giant posted a 7.1% rise in 2023 U.S. sales, fueled by demand for its crossover SUVs and pickup trucks and easing supply chain constraints.
Conagra Brands (NYSE:CAG) stock fell 2% after the packaged foods company cut organic net sales growth and profit forecasts for fiscal 2024 and warned of a slower recovery in demand for its produce.
Crude steadies amid Middle East supply concerns
Oil prices stabilized Thursday after the previous session’s sharp gains on continued concerns over supply from the Middle East.
By 09:45 ET, the U.S. crude futures traded 0.2% higher at $72.55 a barrel, while the Brent contract climbed 0.4% to $77.92 a barrel.
Both contracts surged around 3% on Wednesday after protests over high fuel prices caused Libya’s El Sahara oil field to halt production, with the field producing about 300,000 barrels per day.
This added to ongoing concerns over Yemen's Iran-backed Houthis targeting shipping in the Red Sea.
The market was also supported by data from the American Petroleum Institute, showing U.S. crude stocks fell by a bigger-than-expected 7.4 million barrels last week.
Official data from the Energy Information Administration is due later Thursday, delayed by a day due to Monday’s New Year's holiday.
Additionally, gold futures rose 0.1% to $2,044.50/oz, while EUR/USD traded 0.2% higher at 1.0941.
(Oliver Gray contributed to this article.)