JOLTS — What you need to know in markets on Tuesday

Markets Reporter
Yahoo Finance

The Dow is back.

On Monday, stocks rallied across the board with the 178-point move higher in the Dow Jones Industrial Average pushing the blue chip stock index into green numbers for the year.

To start the week, the Dow added 0.7% to lead the major indexes or 178 points, while the S&P 500 rose 0.45%, or 12 points, and the tech-heavy Nasdaq added 0.69%, or 52 points.

Treasury yields also continued their climb higher after shooting to multi-week lows at the end of last month as the 2-year yield settled near 2.51% on Monday and the 10-year settled around 2.94%.

On Tuesday, investors will get one of the week’s big economic data points out in the morning as the BLS will release its job openings and labor turnover survey — also known as the JOLTS report — for April at 10:00 a.m. ET.

In March, a record 6.6 million jobs were open and economists have closely watched this report as a sign that labor shortages persist across the economy.

American business leaders have been complaining about a lack of quality labor for years as job openings have soared to a record high. REUTERS/Mike Blake
American business leaders have been complaining about a lack of quality labor for years as job openings have soared to a record high. REUTERS/Mike Blake

President Donald Trump — who last week appeared to share that the May jobs report was good about an hour before its official release — tweeted Monday evening ahead of the JOLTS report, “In many ways this is the greatest economy in the HISTORY of America and the best time EVER to look for a job!”

With a record number of jobs open, he’s not wrong about it being a great time to look for a job.

Also on the economic calendar will be reports on activity in the services sector from the Institute for Supply Management as well as Markit Economics, with both readings expected to show an expansion of activity during May.

On the earnings side, the quiet week continues with headliners expected to report results Tuesday including Ambarella (AMBA), HD Supply Holdings (HDS), and the At Home Group (HOME).

Also expect one of Tuesday’s top business and politics stories to be the Monday evening news that Howard Schultz, founder and former CEO of Starbucks (SBUX), would resign his position as executive chairman, effective June 26. Following this news, shares of Starbucks were down about 1% in after hours trade.

Schultz has long been rumored to have political ambitions and his departure from any role at the company that made him a billionaire immediately ignited speculation late Monday that he has designs on elected office. Perhaps the highest office in the land.

Another stock to watch Tuesday will be Twitter (TWTR), which was up as much as 4% in after hours trade on Monday after news that it would be added to the S&P 500. Twitter shares on Monday hit their highest level since 2015. Over the last year, shares have more than doubled.

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland

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