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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

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Indexes up: Dow 0.36%, S&P 0.15%, Nasdaq 0.17%

(Adds market details after close of trading)

By Chibuike Oguh

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

higher 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.

Wall Street's main indexes gained ground after paring

earlier loses. Equities in real estate and consumer

staples sectors advanced ahead of others, while

materials and energy stocks were the biggest

losers.

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

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

Monday showed 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 Santa Monica, 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.

The Dow Jones Industrial Average rose 140.26 points,

or 0.36%, to 38,711.29, the S&P 500 gained 7.94 points,

or 0.15%, to 5,291.34 and the Nasdaq Composite gained

28.38 points, or 0.17%, to 16,857.05.

Megacap technology stocks, including Amazon.com ( AMZN ),

Alphabet, Nvidia and Microsoft ( MSFT ),

ended higher after losing ground early in the session.

Oil giants Exxon Mobil ( XOM ) and Chevron ( CVX ) fell 1.6%

and 0.8%, respectively, as demand concerns weighed on crude

prices.

Bath & Body Works ( BBWI ) slumped 12.8% 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 4.4% after the media

conglomerate said it was exploring strategic options or a joint

venture for its Paramount+ streaming service.

Declining issues outnumbered advancers by a 1.32-to-1 ratio

on the NYSE. On the Nasdaq, 1,468 stocks rose and 2,762 fell as

declining issues outnumbered advancers by a 1.88-to-1 ratio.

The S&P 500 posted 19 new 52-week highs and 6 new lows while

the Nasdaq Composite recorded 40 new highs and 134 new lows.

Total volume of shares traded across U.S. exchanges was

about 10.6 billion, compared with the 12.6 billion average over

the last 20 trading days.