U.S. stock futures were steady Friday ahead of key payrolls data and after soft guidance from tech heavyweight Apple.
What’s happening
-
Dow Jones Industrial Average futures
YM00,
-0.01%
rose 13 points, or 0%, to 33927. -
S&P 500 futures
ES00,
-0.18%
dropped 7 points, or 0.2%, to 4329. -
Nasdaq 100 futures
NQ00,
-0.36%
decreased 52 points, or 0.4%, to 14946.
On Thursday, the Dow Jones Industrial Average
DJIA
rose 565 points, or 1.7%, to 33839, the S&P 500
SPX
increased 80 points, or 1.89%, to 4318, and the Nasdaq Composite
COMP
gained 233 points, or 1.78%, to 13294.
The S&P 500 closed back above its 200-day moving average, which was 4,245.
What’s driving markets
Stocks have been rejoicing as the long-end of the Treasury curve has rallied, with the yield on the 10-year Treasury
BX:TMUBMUSD10Y
sliding 21 basis points over three days. Yields move in the opposite direction to prices.
That rally in stocks and bonds has come after the U.S. Treasury set plans for less issuance on the long end than anticipated, the Federal Reserve gave indications that it may have made the last interest-rate hike of the cycle, and some key economic reports came in softer than anticipated.
Relief on bonds led to a second day of strong gains in equities, led by profit-less tech stocks such as those in the ARK Innovation ETF
ARKK
and regional banks, including those in the SPDR S&P Regional Banking ETF
KRE.
Whether that rally continues will be impacted by the release of the pivotal nonfarm payrolls report, which according to economists polled by the Wall Street Journal will show 170,000 jobs added, an unemployment rate of 3.8% and hourly wage growth of 0.3%.
Apple
AAPL,
+2.07%
will be a headwind as the biggest U.S. company by market capitalization saw pressure as the iPhone maker barely met analyst expectations for revenue, and forecast sales below Wall Street estimates for the current fiscal first quarter.
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