U.S. stock futures fell slightly late Thursday as investors awaited the release of Friday’s June jobs report.
During the session, major indices posted their best one-day performances in about two weeks, with the S&P 500 and the tech-heavy Nasdaq Composite now having gained for four straight trading days. They ended Thursday up 1.5% and 2.3%, respectively, while the Dow Jones Industrial Average rose 1.1%.
As of 6:15 p.m. EST, futures for the S&P 500, Dow Jones Industrial Average and Nasdaq were down 0.13%, 0.11% and 0.16%, respectively.
In recent weeks, worries about a recession have grown, focusing investors on the latest economic data as they watch inflation readings and the Federal Reserve’s plans to raise interest rates. Americans filed 235,000 initial claims for unemployment last week, the Labor Department said Thursday, a slight increase from the previous week, but there is no sign that the labor market is slowing rapidly. The June jobs report, which comes out Friday morning, will provide a more comprehensive view.
Job growth is expected to slow but remain stable, as the consensus calls for 250,000 new non-farm payroll positions. The economy added 390,000 in May. The reported unemployment rate has now remained at 3.6% for three consecutive months, and Friday’s report could raise it to four. The forecast for June remains at 3.6%, according to a survey of nearly 30 economists compiled by The Wall Street Journal. They expect average hourly wages for private sector workers to rise 0.3% month-over-month and 5% year-over-year.
Anecdotally, layoffs and hiring freezes have increased in recent months, especially in the tech sector. For instance,
), which jumped 15.1% on Thursday after announcing plans for a four-for-one stock split, appears to be a company bracing for job cuts. CEO Matt Furlong wrote a note to employees which was seen by Barrons announcing the departure of the company’s chief financial officer as part of plans to “adjust” its workforce. After the market closed, the stock fell 4.8% on the news, which was first reported by Axios.
) also fell 4.1% after hours following a Washington Post report that suggested Elon Musk’s purchase of the company was in “serious jeopardy”. Citing three unnamed people familiar with the situation, The Post reported that Musk’s team had concluded
spam account data is unverifiable.
) rose 4% after the bell on a strong quarterly earnings report. The apparel maker said it earned 29 cents per share on second-quarter revenue of $1.5 billion, beating analysts’ expectations of 23 cents per share on $1.43 billion.
Other companies performing after-hours removals included
), up 5%;
), up 4.3%;
), down 5%; and
), which lost 4.7%.
Although overshadowed by employment on Friday, US wholesale inventory data for May is also released at 10 a.m. Economists polled by the Journal expect stocks to rise 2% after growing 2.2% in April.
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