S&P 500 Futures Show Resilience Ahead of Crucial Jobs Report

Before the release of the September jobs report, U.S. stock index futures experienced a slight increase early on Friday.

What’s happening

  • Futures for the Dow Jones Industrial Average, specifically the YM00 contract, increased by 43 points or 0.1% and reached a level of 33,345.
  • The S&P 500 futures, specifically ES00, increased by 4 points or 0.1% and reached a value of 4,294.
  • The Nasdaq 100 futures, symbolized by NQ00, rose by 0.1%, resulting in a 14-point increase to reach 14,877.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced slight declines on Thursday. The Dow Jones dropped by 10 points (or 0.03%) to 33,120, the S&P 500 declined by 6 points (or 0.13%) to 4,258, and the Nasdaq Composite fell by 16 points (or 0.12%) to 13,220.

What’s driving markets

The September U.S. employment data will be released at 8:30 a.m. Eastern Time. Economists predict that there will be an increase of 170,000 jobs and an unemployment rate of 3.7%. This report is significant as it is the final one before the Federal Reserve makes its next decision regarding interest rates on November 1st.

Henry Allen, a strategist at Deutsche Bank, stated that today’s reading is crucial in determining whether another rate hike is still a possibility, as the pricing for it has been fluctuating between above and below 50% (currently at 38% this morning).

Labor market data has caused significant fluctuations in the stock market this week. Initially, the market decreased dramatically upon the release of a report indicating an unexpected increase in job openings. However, it rebounded when a subsequent report revealed a decline in private sector payrolls from ADP. The market later calmed down again following another discouraging report on weekly jobless benefit claims.

In addition to the employment report, the Wall Street Journal has released news about Exxon Mobil potentially acquiring Pioneer Natural Resources for $60 billion. This information could impact the performance of energy stocks on Friday.

Single stock movers

  • Pioneer Natural Resources’ stock experienced a significant increase of 10% after an article in the Wall Street Journal revealed that Exxon Mobil is nearing a deal to acquire the Texan shale drilling company for approximately $60 billion. In contrast, Exxon Mobil’s shares declined by nearly 2%.
  • Coca-Cola Co. and PepsiCo Inc. experienced a drop in stock prices after the CEO of Walmart Inc. in the United States stated that the introduction of weight-loss drugs such as Ozempic and Wegovy has led customers to purchase fewer groceries and reduce their consumption of calorie-rich products.
  • Levi Strauss & Co., a retail company, experienced a 2% decrease in its stock value following an announcement that it is reducing its projected earnings for the entire year. The company’s executives attributed this downturn to ongoing weak performance in the wholesale segment, particularly in the United States.
  • Shares of Tesla decreased by 1% following the decision by the company to reduce the prices for its Model 3 cars and Model Y electric vehicles in the United States. The price of Model 3 cars was lowered from $40,240 to $38,990, while the cost of Model Y electric vehicles was dropped from $50,990 to $45,990.
  • Philips PHG, +0.56% experienced an 8% decline in their stocks due to the U.S. Food and Drug Administration’s request for additional testing of their sleep and respiratory devices that were recalled. This request was made due to worries regarding the foam that was used in the millions of recalled products.

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