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Equity futures fall ahead of May employment report

Early Friday morning stock futures were low as investors turned their attention to key employment data scheduled for later that day.

Futures related to the Dow Jones Industrial Average fell 79 points, or 0.2%. S & P 500 futures fell 0.3%, while Nasdaq 100 futures fell 0.6%.

Tesla’s stock fell 4% in front of the market after Reuters quoted an internal email and reported that CEO Elon Musk wanted to cut 10% of automakers’ jobs. Musk also reported that he “Super bad“Feelings about the economy.

Traders Looking forward to the May job report It is scheduled for 8:30 am ET. Employment growth is expected to slow in May, but economists say The labor market remains strongEven if part of the economy is weakening.

“Today’s data also only raises the focus on Friday’s May salary release, especially wage growth,” wrote Goldman Chris Hassy. “Very strong readings may show that the Fed has more to do to calm inflationary pressures in the economy, but as we saw in today’s ADP, the big negative surprise is: It may support those who think the United States is in a rapid recession. “

According to a Dow Jones survey, economists estimate that 328,000 jobs were added in May, a decrease of 100,000 from April. Consensus estimates indicate that wages will rise 0.4%, at a faster pace than the 0.3% rise in April.

In addition to non-farm payrolls, traders will monitor index data for new purchase managers from Markit and ISM scheduled late in the morning.

Equities are moving out of the strong session of rising key averages for the first time in three sessions and pacing for the week of victory. The Dow added 435.05 points, or 1.3%. The S & P 500 rose 1.8% and the Nasdaq Composite index rose 2.7%.

Thursday’s rise pushed the main average of the week to the green. The S & P 500 has risen 0.5% and is heading positive for the second straight week.

At the start of trading on Thursday, investors were divided into calls for a recession, and trading was volatile depending on whether the Fed was in a position to take a break from rate hikes.Thursday’s Federal Reserve Vice-Chair Rael Brainard on CNBC Unlikely to do so Anytime soon, and that is, “there is a lot to do to bring inflation down to our 2% target.”

Investors were also digesting employment data released by ADP in the morning. Slowest job creation pace Of the recovery of the pandemic era.

However, as investors saw the value of tech stocks and other beaten names in this year’s pullback, stocks recovered to close prices, ending near the session’s highs.

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Equity futures fall ahead of May employment report

Source link Equity futures fall ahead of May employment report

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