Stock futures edged higher ahead of key employment report

Prior to Friday’s main employment report, US stock index futures were almost unchanged in overnight trading on Thursday.

The futures contract linked to the Dow Jones Industrial Average rose 65 points. S&P 500 index futures rose 0.2%, while Nasdaq 100 index futures rose 0.3%.

middle Regular transactions The Dow fell 170 points, or 0.47%, while the S&P index fell 0.1%. Both are expected to have their first negative week in three weeks. The Nasdaq Composite Index fell for the seventh time in the past eight years, down 0.13%.

All eyes are on Friday’s non-agricultural employment report.Economists expect the economy to increase 422,000 jobs in December, According to estimates compiled by Dow Jones. The unemployment rate is expected to be 4.1%.

Lauren Goodwin, an economist and portfolio strategist at the New York Life Investment Company, pointed out: “Homebase data indicates a surge in employment in December, but the December data has not yet reflected the impact of the surge in Omicron on employment.”

Total number of initial jobless claims each week in the United States 207,000 for the week ending January 1, The Labor Department said on Thursday. The reading was higher than the expected 195,000.But the private sector added 807,000 jobs in December, ADP said on Wednesday that it was significantly higher than the 375,000 expected.

After the release of the minutes of the Fed’s December meeting, the stock market has fallen in the past two days.The central bank is Ready to withdraw its financial aid At a faster rate than some people expected.

“Changes in Fed policy tend to inject volatility into the market,” said Keith Lerner, Truist’s chief market strategist. “During the period when the Fed raises short-term interest rates, the stock market is usually positive because this is usually combined with a healthy economy.”

“The fall in the stock market seems a bit overdone,” UBS Global Wealth Management added in a report to clients. “The normalization of Fed policy should not weaken the prospects for corporate profit growth. The prospects for corporate profit growth remain solid due to strong consumer spending, rising wages, and still easy access to capital.”

The 10-year U.S. Treasury bond yield hit 1.75% on Thursday, much higher than last week’s 1.51%. The rise has hit the growth-oriented areas of the market, as promised future profits have begun to become less noticeable. As investors shift from growth to value stocks, the Nasdaq Composite Index, which is dominated by technology stocks, is expected to have its worst week since February 2021.