Day Ahead: 3 Top Things to Watch for June 4

By Liz Moyer

Investing.com -- U.S. stocks staged a rally Wednesday after better-than-expected economic data suggested the worst of the economic hit from the global health pandemic may be over.

The Dow Jones Industrial Average surged more than 500 points and the broader S&P 500 is up 2% for the first three days of June, a sharp about-face from its recent decline. Businesses have begun to reopen and restrictions on individuals have loosened as states and cities try to restart their economies.

Among the items to watch for Thursday are additional jobs data, corporate earnings, and another stock debut.

Here are three things that could move the markets tomorrow.

1. Weekly Unemployment Claims Seen Continuing Multiweek Trend

Weekly initial jobless claims are expected to come in at 1.8 million when the Labor Department reports on Thursday. That is lower than 2.1 million reported last week and a solid sign of continued improvement. On Wednesday, ADP's (NASDAQ:ADP) monthly payroll report beat expectations.

While joblessness spiked sharply after business shutdowns forced tens of millions out of their jobs amid the Covid-19 pandemic, the trend has been heading lower since the worst week at the end of March, when a record 6.9 million workers filed initial jobless claims. So far, more than 40 million Americans have filed unemployment claims.

Jobless claims arrive at 8:30 AM ET (12:30 GMT).

2. Earnings Reports Due From Broadcom and Gap

Chipmaker Broadcom (NASDAQ:AVGO) and casual apparel retailer Gap (NYSE:GPS) are scheduled to report quarterly profit tomorrow.

Broadcom shares have rallied strongly since March and have gotten attention this week from a couple of positive analyst reports ahead of earnings. Analysts are forecasting per-share profit of $5.14, on revenue of $5.7 billion.

Gap is reporting fiscal first-quarter earnings after the closing bell. The Covid-19 shutdowns across the globe are expected to weigh on its numbers, with analysts estimating a 59 cent-per-share loss on sales of $2.3 billion after a strong prior quarter.

3. Another IPO Set to Begin Trading

Zoominfo, a maker of software that aids companies in sales and marketing – and not to be confused with the popular videoconferencing service of a similar name – continues this week's streak of public stock debuts.

The company is set to begin trading under the ticker "ZI" after raising nearly $1 billion in an initial public offering this week. Also this week, Warner Music launched its $1.8 billion IPO.

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