Stock futures were largely unchanged Friday morning as investors awaited the release of crucial payroll data.
Futures linked to the Dow Jones Industrial Average dropped 42 points, or 0.1%, while S&P 500 futures fell by 0.08%, and Nasdaq 100 futures remained flat.
On Thursday, several companies posted strong quarterly results, leading to notable stock gains. Ulta Beauty saw a 12% increase in its share price after reporting better-than-expected earnings for the fiscal third quarter. Other companies, including GitLab and DocuSign, also experienced significant gains, with their stocks rising by 7% and 14%, respectively, following quarterly earnings beats.
However, the focus now shifts to Friday’s jobs report, with economists expecting the data to provide key insights into the health of the labor market and its potential influence on the Federal Reserve’s decision at its upcoming policy meeting in mid-December. Dow Jones polled economists who anticipate a nonfarm payroll increase of 214,000 in November, a sharp rebound from October’s significantly smaller gain of just 12,000.
The results of the report could play a pivotal role in shaping expectations about the pace of interest rate cuts by the Federal Reserve in 2024. Charlie Ripley, senior investment strategist at Allianz Investment Management, highlighted that if the jobs report shows stronger-than-expected growth, it could lead the Fed to reconsider the timing of rate cuts.
Stocks closed lower on Thursday, following a series of record highs in the previous session. The S&P 500 was up 0.7% for the week so far, while the tech-heavy Nasdaq Composite saw a 2.5% increase. The 30-stock Dow, however, was down by 0.3%.
Friday’s jobs report follows a week of mixed signals in the markets. US jobless claims rose to a one-month high, while market participants are continuing to digest recent economic data and anticipate further signals about the Fed’s monetary policy direction. Investors are particularly focused on the labor market, which remains a key factor in the Fed’s rate-setting decisions.
The broader market mood remained cautious as investors awaited the jobs data, with equities in Australia, Japan, and Hong Kong showing slight declines.