Stock futures rise ahead of May jobs report
Stock futures opened slightly higher Thursday night, as investors waited for a key impression in the US job market. Contracts on each of the S&P 500, Dow and Nasdaq indexes rose after falling during the normal trading day.
Traders await the release of the May Jobs Report on Friday morning, which will offer another look at the strength of the labor market recovery and whether the economy has recovered enough to warrant a monetary policy pivot of the Federal Reserve. Consensus economists expect the non-farm payroll to increase by 674,000, or the most since March, and the unemployment rate to drop to a new pandemic-era low of 5.9%.
A stronger-than-expected ADP report on private wages and weekly jobless claims printed on Thursday paved the way for a potentially strong “official” jobs report from the Labor Department. Another wave of vaccinations has taken place, business reopenings have resumed, and companies have struggled to bring back workers to keep pace with growing demand. However, a strong jobs report could also be seen as an incentive for the Federal Reserve to start signaling a policy retreat in times of crisis.
“We are now entering the booming city. We are on the verge of moving from recovery to expansion of the economy,” RSM chief economist Joseph Brusuelas told Yahoo Finance. “I think it’s appropriate, members of the Federal Reserve are starting to signal to markets that things won’t be the same forever, that it’s appropriate that they start thinking about slowing the pace of buying. at the very least, or to change the composition of those asset purchases.
“It makes sense that later this summer, maybe as early as Jackson Hole, or at the September meeting, we would get a more definitive overview from the central bank on the end of these asset purchases,” he said. he adds.
Still, some Federal Reserve officials have suggested they are still inclined to stay on hold. New York Federal Reserve Chairman John Williams told Yahoo Finance’s Brian Cheung on Thursday that the economy was “still a long way from sustaining the substantial progress we are really looking for in terms of adjustments to our purchasing program. of assets “. However, earlier this week, Federal Bank of Philadelphia Chairman Patrick Harker took a different stance, saying that “it might be time to at least think about cutting spending.”
Meanwhile, the latest stock rally last week took a hiatus on Thursday as shares of AMC Entertainment (AMC) fell after doubling a day earlier. Shares of other heavily shorted stocks popular with traders on Reddit, including BlackBerry (BB) and Naked Brand Group (NAKD), also traded with relatively less volatility. Still, many experts have suggested that the high turnout of retail traders and social media driven stock trading is here to stay.
“Reddit is not dead and the theme of stocks itself is not dead, and there is a powerful large audience that can still push these stocks a little bit,” Jim Bianco, president of Bianco Research, told Yahoo Finance. “It looks like we’re now starting to get to the point where the broader market is starting to notice it again, as it did in late January. And if we continued to see meme stocks continue to drop, maybe a larger systemic problem will become a worry, not a problem, but will also become a worry as it was in January. ”
“I think we’re going to have to settle in and realize that this is just the investment environment we have now in 2021,” he added.
6:16 p.m. ET Thursday: Stock futures rise ahead of May jobs report
Here’s where the markets were trading on Thursday night:
S&P 500 Futures Contracts (ES = F): 4 2192.5, +1.25 point (+ 0.03%)
Dow Futures (YM = F): 34,586.00, +19 points (+ 0.05%)
Nasdaq Futures (NQ = F): 13,535.00, +5.75 points (+ 0.04%)
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
Read more from Emily: