Stock Market Update

[BRIEFING.COM] The indices have elevated off their lows but remain in negative territory, trading in a very tight range over the last 90 minutes or so.

There are some questions as to whether the PCE price data was as rally-worthy as it was made out to be considering it was for March (i.e., before the impact of tariff actions has really set in, meaning future reports might not look as friendly). The latter is why the Fed has suggested it is in a wait-and-see mode with its policy view.

The Fed is waiting to see what future inflation reports bring, while also keeping an eye on employment trends. The April ADP report today was certainly on the softer side with just 62,000 jobs added to private-sector payrolls; and yesterday's JOLTS - JOb Openings Report saw the lowest number of openings since 2020.

On Thursday, weekly initial and continuing jobless claims will be reported. Initial claims -- a leading indicator -- have been running well below levels typically associated with a recession. That is expected to remain the case with the Briefing.com consensus estimate pegged at 225,000.

Friday's session will produce the comprehensive Employment Situation Report for April, which will contain the backward-looking unemployment rate.