US equity futures remain unchanged Investors await key payroll report
U.S. equity futures were largely unchanged on Friday, as investors awaited November employment data, at the end of a volatile week fueled by headlines on the omicron coronavirus variant and comments warmongers from Federal Reserve Chairman Jerome Powell.
How are stock index futures traded?
S&P 500 ES00 futures contracts,
increased by less than 0.1% to 4,577
Dow Jones Industrial Average Futures YM00,
was also slightly higher at 34,639
Nasdaq-100 NQ00 Futures Contracts,
increased 0.1% to 16,010
Thursday, the industrialist Dow DJIA,
rose 617.75 points, or 1.8%, to 34,639.79 – the best winning percentage since March 5, 2021 and the best points earning since November 9, 2020. The S&P 500 SPX Index,
closed 1.4% higher at 4,577.10, its best day since October 14. The Nasdaq Composite COMP,
added 0.8% to 15,381.32. All three indices reflect a loss of less than 1% for the week so far.
The Russell 2000 RUT Index,
gained 2.7% to close at 2,206.33, a day after reaching its first correction since June 2020.
What drives the markets?
After several days of volatile action, the major indices posted positive close for the first time in three sessions on Thursday. The gains were driven by hopes that the omicron variant of the coronavirus that causes COVID-19 will prove to be less deadly, albeit more transmissible, and less disruptive to the global economy.
Investors have learned of a second U.S. case of the omicron variant from a Minnesota resident visiting New York City, who is believed to have presented mild symptoms.
The US economy is focused directly on Friday, with non-farm workforces in November expected to show 573,000 new jobs created, up slightly from 531,000 the previous month, according to economists polled by the Wall Street Journal. Those numbers are due at 8:30 a.m. EST, along with the unemployment rate and average hourly earnings.
The data became even more important after the Fed’s Powell this week spoke of a strong economy and the prospect of a faster cut, which could accelerate interest rate hikes.
“If the virus ticker remains silent, a higher impression of non-farm payrolls in the United States could see equity gains capped, with an impression slightly below or in line with the 550,000 target, not enough to eliminate faster fears of the Fed-tapping altogether, “said Jeffrey Halley, senior market analyst at Oanda, in a note to clients.
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Investors will also hear from St. Louis Fed Chairman James Bullard at 9:15 a.m. EST with the Institute for Supply Management’s services index for November factory orders and October and a basic capital equipment overhaul all expected at 10:00 a.m. EST.
As markets rebounded on Thursday, volatility remains high, Ipek Ozkardeskaya, senior analyst at Swissquote, said in a note to clients.
“This is a sign that the stress in the market is not over yet, as the root cause of the latest market liquidation is not only omicron, it is also the fear that the markets will end up with less. Federal Reserve support due to the Fed’s willingness to tackle the issue of high inflation is moving forward. And this remains a major downside risk for risky assets, “Ozkardeskaya said.
Stocks of Chinese companies could be the center of attention on Friday, after Chinese rideshare giant Didi Global DIDI,
announced Thursday evening that it would withdraw from the New York Stock Exchange, following pressure from the Chinese government. Didi shares rose 9% in pre-market trading.
Among other assets, oil prices continued to rise, with West Texas Intermedicate CL00 crude,
up 2.5% to $ 68.14 per barrel, and the global benchmark Brent BRN00,
up 2.3% to $ 71.28 per barrel.
On Thursday, the Organization of the Petroleum Exporting Countries and their allies, known together as OPEC +, decided to renew their existing production policy and increase production early next year, even in the midst of fears that the omicron variant will hamper demand.
Which companies are targeted?
Actions of DocuSign
fell 32% in pre-market trading after the e-signature company’s billing and revenue forecast fell short of expectations and its chief executive said the pandemic boom had dissipated in the quarter.
Actions of Marvell technology
shares jumped 21% in pre-market after the chipmaker’s earnings and outlook beat Wall Street expectations.
How are other assets traded?
GC00 gold futures,
for the February delivery GCF22,
rose 0.6%, or $ 10.60 to $ 1,773.20 an ounce, rebounding from seven week lows.
January West Texas Intermediate crude CLF22,
rose $ 1.91, or 2.8%, to $ 68.40 a barrel, a day after the Organization of the Petroleum Exporting Countries and their allies, known together as OPEC +, decided to renew their current policy and increase monthly overall production of 400,000 barrels per day in January.
The ICE US Dollar DXY index,
a measure of currency relative to half a dozen other currency units, fell 0.2% to 95.864.
The 10-year Treasury bill earns TMUBMUSD10Y,
was at 1.431%, down 2 basis points. The prices of treasury bills fall as yields rise.