US stocks up little, struggling to gain follow through traction

Major US equity indices edged higher on Thursday after strong ADP report reaffirmed the underlying strength in the US labor market, an important aspect of any economy.

The latest read on private-sector employment surpassed even the most optimistic estimates and seems to have raised expectations from Friday's highly anticipated official non-farm payrolls report. However, weekly jobless claims rose more than expected, hitting a five-week high for the week ended May 26 but did little to dent investors' sentiment. 

   •  US: Private-sector employment increased by 253,000 from April to May - ADP

Other economic data due for release on Thursday include ISM manufacturing PMI, which is expected to have ticked lower to 54.5 in May as compared to April 54.8.

On the monetary-policy front, the Federal Reserve Gov. Jerome Powell said that it would appropriate for the Fed to raise interest-rates gradually, if the economy continued to perform on expected lines, and begin reducing the size of its balance sheet this year.

During opening hour of trade, the Dow Jones Industrial Average added around 20-points to 21,029, while the broader S&P 500 Index climbed 4-points to 2,415. Meanwhile, tech-heavy outperformed the broader indices and jumped 20-points to 6,219.

Today’s move, however, lacked strong momentum as traders seemed reluctant to place any fresh bullish bets ahead of the key event risk – Friday’s monthly jobs report.