[ad_1]
U.S. stocks look set to extend their gains on Friday, as the budget bill cleared the Senate by a margin of 63-36 votes, paving the way for its enactment. With the debt limit impasse now behind, investors’ focus shifted to the June Federal Reserve rate decision. The non-farm payroll data for May, which has implications for the rate move, is due for release ahead of the market opening and will likely dictate the market mood in the session.
Cues From Thursday’s Trading:
Stocks gained significantly on Thursday, as traders cheered the passage of the budget bill by the House while ignoring some disappointing tech earnings and strong labor market data. Weaker-than-expected manufacturing activity data offered some encouragement, as it was parsed as good news for the interest rate outlook.
The Dow Industrials reclaimed the 33,000 mark, while the S&P 500 and the Nasdaq Composite indices settled at their highest levels since mid-August, 2022.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | +1.28% | 13,100.98 | |
| S&P 500 Index | +0.99% | 4,221.02 | |
| Dow Industrials | +0.47% | 33,061.57 |
Analyst Color:
The Fed will likely stay pat at the June 13-14 Federal Open Market Committee meeting, said former hedge fund manager Whitney Tilson. He expects the central bank to hold fire yet again in the July meeting, as inflation continues to trend downward, and the economy slows, thanks to the credit crunch in the banking sector and the housing slowdown.
Due to the same reasons, the Fed will cut rates by 25 basis points in each of the final three Fed meetings of the year, Tilson said. ” I think this is bullish for stocks,” he added.
Futures Today
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | +0.51% | |
| S&P 500 Futures | +0.49% | |
| Dow Futures | +0.46% | |
| R2K Futures | +0.52% |
In premarket trading on Friday, the SPDR S&P 500 ETF Trust SPY rose 0.50% to $423.95 and the Invesco QQQ ETFQQQ rose 0.53% at $353.89, according to Benzinga Pro data.
Upcoming Economic Data:
The Labor Department is scheduled to release its non-farm payrolls report for May at 8:30 a.m. EDT. Economists, on average, expect a non-farm payroll gain of 180,000 compared to the 253,000 jobs that were added in April.
The pace of job gain in the manufacturing sector is expected to have slowed from 11,000 to 8,000. The jobless rate, based on the household survey, is expected to edge up 0.1 points to 3.5%. Average hourly earnings, a measure of inflation, may have risen 0.4% month-over-month and 4.3% year-over-year in May. This compares to increases of 0.5% and 4.4%, respectively, in April.
See also: Futures Trading: Best Futures To Trade
Stocks In Focus:
- MongoDB MDB jumped over 25% to $368.60 in premarket trading as the stock reacted to the company’s quarterly results.
- lululemon Athletica, Inc. LULU rose nearly 15% in reaction to the retailer’s quarterly results.
- Dell Technologies, Inc. DELL fell more than 3.60% on the company’s lackluster guidance.
- Among the other stocks moving on earnings were Asana, Inc. ASAN (up about 7%), SentinelOne, Inc. S (down over 37%) and Zumiez, Inc. (NASDAQ ZUMZ) (down about 5%).
Commodities, Bonds, Other Global Equity Markets:
Crude oil futures rose 1.30% to $71.07 in early European session after they jumped 2.95% to $70.10 in the previous session.
The yield on the benchmark 10-year Treasury note rose 0.006 percentage points to 3.614%.
The major Asian markets moved strongly to the upside on Friday, tracking the positive sentiment on Wall Street overnight and the passing of the budget deal by the Senate. Hong Kong’s Hang Seng Index stood out with a gain of over 4%. On the other hand, the New Zealand and Malaysian markets bucked the downtrend.
European stocks opened Friday’s session on a firm note and have seen further gains in late-morning trading.
[ad_2]
Source link
