Stock futures struggle before job information and bond yields are high

U.S. stock futures struggled on Friday as investors waited for all the important non-firm pay-roll data, bond yields and energy prices were also in the spotlight.

How is stock-index futures trading?
  • Dow Jones Industrial Average Futures YM00,
    + 0.07%
    Was flat at 34,662

  • S&P 500 Futures ES00,
    + 0.02%
    Was flat at 4,390

  • Nasdaq-100 Future ES00,
    + 0.02%
    Was soft at 14,874

On Thursday, the Dow Jones Industrial Average DJIA,
+ 0.98%
3485, S&P 500 SPX, up 338 points or 0.98%.
+ 0.83%
4400 and Nasdaq Composite Comp, up 36 points or 0.83%.
+ 1.05%
152 points or 1.05% to 14654.

What is driving the market?

Washington avoided an unprecedented federal default after a Senate vote to increase the government’s debt ceiling in late December. The recovery is temporary because lawmakers must return to the negotiating table before the end of the year.

The optimism of a deal was enough to consolidate stocks, but it faded by Friday as investors moved to the sidelines ahead of September pay-rolls data, which could give a window during the Federal Reserve’s tapping move. Data released Thursday showed a decline in weekly unemployment benefit claims.

Economists expect the U.S. to add 500,000 new jobs, more than double the disappointing August, when data was released at 8:30 a.m. Eastern time. Such an increase is expected to put the Fed on track to announce plans to bring back the epidemic in November.

But some are looking for a bigger rise, which could be a problem for the market, said Stein Jacobsen, chief investment officer at Saxo Bank. “Strong data could be ironic for equities if the response shows that yields are rising aggressively, especially for more yield-sensitive technologies and the momentum of the centralized Nasdaq-100 index NDX.
+ 0.88%,
He said in a note to clients.

“That index has not traded above its 21-day moving average (currently around 15,050) since mid-September, when the S&P 500 index is trading near 4390 at its 21-day moving average, after trying to rise above it yesterday,” Jacobsen said.

Bond yields rose on Friday with the 10-year U.S. Treasury note TMUBMUSD10Y,
The 2 basis points rose 1.591%, boosting profits since Thursday to 10- and 30-year highs since June, after easing fears of a debt ceiling and falling weekly unemployment claims.

Markets will see average hourly earnings and monthly employment rates, as well as any correction to August data. Wholesale inventory for August is 10 a.m. ET.

Are other assets traded?
  • US oil benchmark CL00,
    + 0.92%

    It rose 1% to 79 79.11 per barrel, and the contract for the week rose 4%, leading to a seventh-straight weekly gain. Gold Future GC00,
    + 0.02%
    Humbly was $ 1,759.80 per ounce.

  • ICE USD Index DXY,
    The currency measurement was flat against a kite of six main rivals.

  • In European equity trading, Stoxx Europe 600 SXXP,
    London’s FTSE 100 UKX was down -0.03%, down 0.3%.

  • China’s CSI 300 index 000300,
    + 1.31%
    Markets rose 1.3% as markets returned from the holiday. Nikkei 225 NIK of Japan,
    + 1.34%
    Gained 1.3%.

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