On Friday, ahead of the Labor Department’s monthly employment report at 8:30 a.m., U.S. stock-index futures traded barely changed heading into a long holiday weekend. As the economy recovers from COVID, it’s possible that around 700,000 jobs were generated last month. The jobs data will be closely watched by the markets because, despite a record number of job postings, the labor market recovery has been uneven in the aftermath of the fatal pandemic.
The bond market in the United States will shut an hour early on Friday and will be closed on Monday in commemoration of the Fourth of July holiday, which comes on a Sunday this year. What is the current state of benchmark trading?
The Dow Jones Industrial Average futures YM00, +0.05 percent and YMU21, +0.05 percent were trading 3 points higher at 34,517, a gain of less than 0.1 percent.
Futures on the S&amp
Futures on the Nasdaq-100 index
+0.25 percent NQ00
NQU21, +0.25 percent was up 21.50 points at 14,569.50, up 0.2 percent.
The S&P 500 SPX, +0.52 percent increased 22.44 points, or 0.5 percent, to close at 4,319.94 on Thursday; the Dow DJIA, +0.38 percent rose 131.02 points, or 0.4 percent, to settle at 34,633.53, within striking distance of its record close of 34,777.76 set on May 7. The Nasdaq Composite Index COMP, +0.13 percent finished at 14,522.38 points, up 18.42 points, or 0.1 percent. As of Thursday’s close, the Dow was on track for a weekly gain of 0.6 percent, marking its second consecutive weekly gain; the S&P 500 was up 0.9 percent, also on track for its second consecutive weekly gain; and the Nasdaq Composite was on track for a weekly gain of 1.1 percent, marking its second consecutive weekly gain. What is the stock market’s driving force? On Friday, investors in the United States will be focusing on the job situation, with an update on the monthly data approaching. In a daily note, Neil Wilson, chief market analyst at Markets.com, stated, “Today, all eyes turn to the US jobs report, the monthly nonfarm payrolls.” According to economists polled by The Wall Street Journal, the United States added 706,000 new jobs in June, the largest monthly growth since March. Unemployment is predicted to fall to 5.6 percent from 5.8 percent this year. Econoday conducted a survey of economists and found a wide range of forecasts, ranging from 520,000 to 1 million new employment. This range, like experts’ differing forecasts for the April report, might lead to disappointment. Despite signs that inflation is picking up in the aftermath of the pandemic, market watchers are wary of the jobs recovery, which might be a major driver for investors on Friday. The number of people quitting their jobs has lately reached an all-time high. There has also been a surge in retirements among the elderly who do not want to jeopardize their health. “While we know the Fed isn’t blind to inflation risks,” Wilson wrote, “we also know that the labor market is a significant factor in deciding the likely timing and speed of tightening when it does happen.” In May, the labor-force participation rate, which measures the proportion of able-bodied adults 16 and older who are employed, was 61.6 percent, the same as in October. “The US economy has generated 14 million jobs since the labor market bottomed out in April of last year, but employment in May 2021 was still 7.5 million behind its pre-pandemic level,” according to PNC Financial Services senior economist Gus Faucher. The jobs report comes as weekly statistics released on Thursday indicated that weekly unemployment benefit claims in the United States fell to a historic low of 364,000 as additional benefits are phased out. Aside from jobs, investors will be watching for a report on foreign commerce in goods and services for May, which is coming at 8:30 a.m. and is predicted to show a deficit of $71.2 billion, up from $68.9 billion in April. Factory orders for May will be released at 10 a.m., and are predicted to grow 1.5 percent month over month. On Friday, the Organization of the Petroleum Exporting Countries and Russia—members of the group known as OPEC+—delayed a decision on whether to ease output limitations in place to help stabilize oil prices. The oil decision comes as the group grapples with the COVID pandemic’s long-term effects on energy demand, as well as concerns about the impact of coronavirus variants in some parts of the world, as well as expectations for higher demand as many economies emerge from lockdowns and stay-at-home protocols imposed to contain the pandemic’s spread. Investors may also be watching the debate over the United States’ debt ceiling, as reports suggest Congress has no intentions to raise it. Which businesses are being scrutinized?
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Robinhood Markets HOOD, a brokerage firm,
announced its intention to list under the ticker “HOOD” on the Nasdaq Inc. platform./n
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