Investors Await April Jobs Report as Stock Futures Rise
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S.
Brendan Mcdermid | Reuters
Futures Indicate Positive Wednesday Ending, Eyes on April Jobs Report
Stock futures rose Thursday night as investors prepared themselves for the upcoming April jobs report, due Friday morning. Despite a week marked by negative returns, Thursday’s positive bounce led by Apple, Amgen, and Cloudflare offers early hope.
Market Futures Investments
Futures tied to the Dow Jones Industrial Average gained 212 points, or 0.55%. S&P 500 futures rose nearly 0.3%, while Nasdaq 100 futures advanced about 0.5%. Investors are anticipating a positive market opening.
Tech Giants on the Rise
Apple is expected to attract significant attention after announcing a $110 billion share repurchase and delivering a top-and-bottom-line beat. Such positive news led to a robust after-hours extension in the stock’s price, climbing more than 6% during late trading. Biotech company Amgen also saw remarkable stock growth, soaring by roughly 13% after posting better-than-expected earnings and revenue figures.
Cautious Outlook for Cloudflare
Cloudflare experienced a significant price hit during extended trading, losing 15% after reporting weak revenue guidance for the full year. This development brings a level of caution to the market despite the positive momentum.
Weekly Performances
While the major indexes bounced back on Thursday, the S&P 500, Nasdaq, and Dow remain on track to finish the week in negative territory. Currently, the S&P 500 is down by 0.7% week to date, the Nasdaq is down nearly 0.6%, and the Dow is down 0.04%.
Rate Cuts and Hikes in the Spotlight
At the conclusion of the Federal Reserve’s recent meeting, chairman Jerome Powell signaled a reluctance towards increasing interest rates, emphasizing the high threshold for rate hikes. However, Powell’s statement didn’t necessarily suggest rate cuts in the near future. Analysts recognize the positive impact of rate cap stability on equities, concluding that the strong economy and labor market strength reduce the need for immediate cuts.
Market Anticipation for April Nonfarm Payrolls Report
Tomorrow, all eyes in the financial market will be on the publishing of the April nonfarm payrolls report. Monetary policymakers and investors will closely watch for key shifts, particularly in wage growth.
Economic Projections
Economists polled by Dow Jones anticipate a slowdown in job market growth, predicting 240,000 positions were added in April compared to 303,000 in March. Year over year, it is expected that average hourly wages will showcase growth of 4%. The unemployment rate is predicted to hold steady at 3.8%.
