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Dow futures rise 45 pts as nonfarm payrolls loom large

Published 01/06/2023, 08:20 PM
© Reuters.
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By Peter Nurse

Investing.com -- U.S. stocks are seen opening mixed Friday, with investors cautiously awaiting the December jobs report for indications of future monetary policy.

At 07:00 ET (12:00 GMT), the Dow Futures contract was up 45 points, or 0.1%, S&P 500 Futures traded largely flat, while Nasdaq 100 Futures dropped 25 points, or 0.2%.

The three main indices closed lower Thursday after stronger than expected ADP's private payroll data and lower initial unemployment claims raised fears that this would encourage the Federal Reserve to keep interest rates higher for longer.

The blue-chip Dow Jones Industrial Average ended 339.7 points, or 1% lower, the broad-based S&P 500 lost 1.2%, and the tech-heavy Nasdaq Composite ended 1.5% lower.

This puts the focus on Friday's official jobs report, which is a broader reading than just private payrolls. The Fed will be looking at the numbers to judge whether the tight labor market is showing signs of softening. It already expects the unemployment rate, which is expected to remain at 3.7% Friday, to rise this year as economic conditions weaken.

Also due later in the session are the ISM non-manufacturing PMI, which is expected to fall in December to 55 from 56.5 the prior month, and factory orders for November, seen offering the first negative reading since July.

In the corporate sector, Tesla (NASDAQ:TSLA) will be in the spotlight after the electric car manufacturer cut electric car prices in China for the second time in less than three months on Friday, stoking expectations for a price war for battery-powered vehicles in the world's largest auto market.

Bed Bath & Beyond (NASDAQ:BBBY) stock slumped 12% premarket after the troubled retailer said late Thursday that it was running out of cash and was considering bankruptcy.

Oil prices edged lower, retreating Friday after Thursday's gains on the back of the release of relatively bullish U.S. inventories data for last week suggesting demand remained strong in this important market during the festive period.

By 07:00 ET, U.S. crude futures traded 0.1% lower at $73.62 a barrel, while the Brent contract fell 0.2% to $78.56.

Both crude contracts remained on track for losses of around 8% this week on concerns a global recession at the start of 2023 will severely hit demand.

Details from Baker Hughes totaling the number of U.S. oil rigs in operation rounds off the week.

Additionally, gold futures rose 0.1% to $1,842.20/oz, while EUR/USD traded 0.2% lower at 1.0500.

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