Following the rally seen over the course of the previous session, stocks are likely to show another strong move to the upside in early trading on Friday. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.2 percent.
The futures surged to new highs following the release of a closely watched Labor Department showing employment in the U.S. increased by much less than expected in the month of April.
The Labor Department said non-farm payroll employment climbed by 175,000 jobs in April after surging by an upwardly revised 315,000 jobs in March.
Economists had expected employment to jump by 243,000 jobs compared to the spike of 303,000 jobs originally reported for the previous month.
The report also showed the unemployment rate crept up to 3.9 percent in April from 3.8 percent in March. The unemployment rate was expected to remain unchanged.
Treasury yields have shown a steep drop following the release of the report, with the yield on the benchmark ten-year note tumbling below 4.5 percent.
The data combined with the decease by treasury yields is likely to help further offset concerns about the outlook for interest rates.
The reaction to the jobs data adds to the positive sentiment previously generated by a surge by shares of Apple (AAPL), as the tech giant is spiking by 7.2 percent in pre-market trading.
Apple is rallying after reporting better than expected fiscal second quarter results and announcing a $110 billion stock repurchase.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of April.
The ISM’s services PMI is expected to inch up to 52.0 in April from 51.4 in March, with a reading above 50 indicating growth.
Stocks fluctuated early in the session on Thursday before moving sharply higher over the course of the trading day. The major averages all showed strong moves to the upside after ending Wednesday’s trading narrowly mixed.
The major averages pulled back off their best levels going into the close but remained firmly positive. The Dow jumped 322.37 points or 0.9 percent to 38,225.66, the Nasdaq surged 235.48 points or 1.5 percent to 15,840.96 and the S&P 500 advanced 45.81 points or 0.9 percent at 5,064.20.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday, with markets in Japan and mainland China closed for holidays. Hong Kong’s Hang Seng Index jumped by 1.5 percent, while Australia’s S&P/ASX 200 Index climbed by 0.6 percent.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index has climbed by 0.6 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 0.5 percent.
In commodities trading, crude oil futures are climbing $0.54 to $79.49 a barrel after edging down $0.05 to $78.95 a barrel on Thursday. Meanwhile, after slipping $1.40 to $2,309.60 an ounce in the previous session, gold futures are advancing $16.50 to $2,326.10 an ounce.
On the currency front, the U.S. dollar is trading at 152.07 yen versus the 153.64 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0802 compared to yesterday’s $1.0725.
Business News
U.S. Stocks Likely To Extend Rally On Jobs Data, Apple Earnings
2024-05-03 12:49:40
