Stock-index futures pointed modestly higher Friday as investors awaited an April jobs report that could set the tone for equities and other markets.
Dow Jones Industrial Average futures YMM9, +0.24% were up 51 points, or 0.2%, at 26,316, while S&P 500 futures ESM9, +0.29% were up 7.4 points, or 0.3%, at 2,925. Nasdaq-100 futures NQM9, +0.54% rose 6.75 points, or 0.5%, to 7,771.
What’s driving the market?
April jobs data is due for release at 8:30 a.m. Eastern. Economists surveyed by Marketwatch produced a consensus forecast for nonfarm payrolls to rise 217,000, though analysts warned that the data could be skewed by temporary Census Bureau hiring. Economists who don’t factor in the Census Bureaus’s hiring have lower estimates. That could skew the reaction to the data.
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The unemployment rate is expected to edge down to 3.7% from 3.8% in March, while wages are forecast to show monthly growth of 0.2%.
Stock-market bulls will be attempting to shake off a two-day skid for the S&P 500 and Dow widely blamed on disappointment with remarks by Federal Reserve Chairman Jerome Powell on Wednesday. Powell offered no indication the Fed was eager to move rates either direction, appearing to disappoint investors who had hoped the central bank would indicate it was tilting toward a rate cut.
The Dow DJIA, -0.46% fell 122.35 points Thursday to end at 26,307.79, a fall of 0.5%. The S&P 500 SPX, -0.21% gave up 6.21 points, or 0.2%, to 2,917.52, while the Nasdaq Composite COMP, -0.16% was down 12.87 points, or 0.2%, at 8,036.77.
A heavy week of earnings results is set to draw to a close.
What stocks are in focus?
Shares of Newell Brands NWL, +2.09% may be in focus after topping Wall Street expectations for earnings and sales.
What are analysts saying?
“Given that this [nonfarm payrolls report] comes just days after the Fed essentially ruled out a rate cut this year, but markets are still pricing in a 50/50 chance, we think there is more room for extended dollar-gains on a strong number than there are losses after a weaker figure,” said Jasper Lawler, head of research at London Capital Group, in a note. “Given that stocks have fallen for the last two days, there’s a good chance investors find enough to like in this report to buy the dip.”
What else is on the economic calendar?
Also at 8:30 a.m. Eastern, traders will get a look at March advance trade in goods data, while Markit is set to release its April services purchasing managers index at 9:45 a.m. Eastern.
The Institute for Supply Management releases its April nonmanufacturing index at 10 a.m. Eastern,
Investors will also hear from a range of Fed speakers. Chicago Fed President Charles Evans is set to speak at 10:15 a.m. Eastern, while Fed Vice Chairman Richard Clarida makes an appearance at 11:30 a.m. Eastern. New York Fed President John Williams is set to speak at 1:45 p.m. Eastern.
