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Stock futures edge slightly higher ahead of May jobs report

Trader on the floor of the NYSE, June 1, 2022.

Source: NYSE

Stock futures rose Thursday night as investors focus their attention on more jobs data due out Friday morning.

Futures contracts linked to the Dow Jones Industrial Average rose about 30 points. S&P 500 and Nasdaq 100 futures both rose 0.1%.

In regular trading Thursday, all three major indices broke two-day losing streaks, putting them on pace for a winning week. The Dow added 435.05 points, or 1.3%. The S&P 500 gained 1.8% and the Nasdaq Composite rose 2.7%.

Thursday’s gains pushed major averages into the green for the week. The S&P 500 is up 0.5% and heading for a second consecutive positive week.

Trading was choppy in early trading on Thursday, with investors divided on calls for a recession and the Federal Reserve’s stance on pausing interest rate hikes. On Thursday, Fed Vice Chairman Lael Brainard told CNBC he was unlikely to do so anytime soon and that there was “a lot of work to do to get inflation back to our target. of 2%”.

Investors were also digesting jobs data released by ADP in the morning, which showed the slowest pace of job creation in the pandemic-era recovery.

But stocks rallied at the close, ending near session highs, as investors saw the value of tech stocks and other names battered in this year’s pullback. Traders eagerly await Friday’s nonfarm payrolls report. Although the pace of job growth is expected to have slowed for May, economists say the labor market remains strong, even as parts of the economy have weakened.

“Today’s data only reinforces the focus on Friday’s May payrolls release, particularly on wage growth,” Goldman’s Chris Hussey wrote. “A very strong reading could signal that the Fed has a lot more to do to ease inflationary pressures in the economy, while a big negative surprise – as we saw in ADP today – could support those who think that the United States is rapidly sliding into a recession.”

Economists see 328,000 jobs added in May, down 100,000 from April, according to a Dow Jones survey. Consensus estimates call for wages to rise 0.4%, a faster pace than April’s 0.3% increase.

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Elsewhere, traders also considered a warning from Microsoft as the company lowered its fourth-quarter guidance, blaming unfavorable exchange rates. Microsoft fell early in the session before ending Thursday slightly in the green.

There are no big earnings reports scheduled for Friday. In addition to non-farm payrolls, traders will also be watching new PMI data from Markit and ISM, due out in the morning.

Stock futures edge slightly higher ahead of May jobs report

Source link Stock futures edge slightly higher ahead of May jobs report

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