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US job openings fall to lowest in more than three years

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Axos Financial ( AX ) drops after Hindenburg Research shorts

stock

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Bath & Body Works ( BBWI ) falls on profit forecast revision

(Updates to 4 PM ET)

By Chibuike Oguh

NEW YORK, June 4 (Reuters) - U.S. stocks ended mostly

flat on Tuesday following softer-than-expected labor market data

that reaffirmed expectations of an interest rate cut by the

Federal Reserve.

Data on Tuesday showed that U.S. job openings fell to their

lowest level in more than three years in April, signaling an

easing in labor market tightness that supported a Fed rate cut

this year. The U.S. Treasury yields slipped following the

report.

The labor market data was the latest in a string of recent

reports that pointed to cooling U.S. economic growth. Data on

Monday had shown that U.S. manufacturing activity had slowed for

the second straight month in May.

"What we've seen in the data so far this week is that it's

been relatively weak, starting with manufacturing PMI and job

openings today," said James St. Aubin, chief investment officer

at Sierra Mutual Funds in California.

"That has had a total effect of helping the rally in the

bond market; but for the stock market, it's a double-edged sword

because they're looking for a rate cut announcement, which has a

rising probability with weaker data," St. Aubin added.

Market expectations for a September rate reduction now stand

around 65%, versus below 50% last week, according to the CME's

FedWatch tool. The closely watched non-farm payrolls data for

May is due on Friday.

According to preliminary data, the S&P 500

gained 7.88 points, or 0.15%, to end at 5,291.26 points,

while the Nasdaq Composite gained 28.38 points, or

0.17%, to 16,857.05. The Dow Jones Industrial Average

rose 134.72 points, or 0.36%, to 38,705.75.

Oil giants Exxon Mobil ( XOM ) and Chevron ( CVX ) fell

as demand concerns weighed on crude prices.

Bath & Body Works ( BBWI ) slumped after a lower revision to

its quarterly profit forecast. Axos Financial ( AX ) dropped

after Hindenburg Research disclosed a short position in the

lender.

Paramount Global ( PARAA ) fell after the media conglomerate

said it was exploring strategic options or a joint venture for

its Paramount+ streaming service.