por admin » Vie Jun 05, 2020 6:00 am
Dow futures jump 280 points ahead of the May jobs report as investors focus on reopening progress
PUBLISHED THU, JUN 4 20206:00 PM EDTUPDATED 13 MIN AGO
Fred Imbert
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Markets set to open higher ahead of May jobs report
U.S. stock futures were sharply higher early Friday, continuing big gains on the week, as investors focused on states reopening and looked past dismal economic data.
Shares of airlines jumped in premarket trading, adding to their big gains this week, as the industry added more summer flights. Casino stocks gained as Las Vegas began to open this week.
Dow Jones Industrial Average futures added 285 points or 1.1%. The move implied an opening a gain of about 277 points at the open. S&P 500 futures gained 0.7%. Futures for the Nasdaq-100, which hit a record on Thursday, added 0.3%.
The Dow is up 3.5% this week. The S&P 500 is up 2.2% and the Nasdaq Composite is up 1.3% through Thursday’s close.
The gains came ahead of the Labor Department’s latest jobs report, which is scheduled for Friday at 8:30 a.m. ET. Economists polled by Dow Jones expect more than 8 million jobs were lost in May while the unemployment rate surged to nearly 20%.
That decline would come after more than 20 million jobs were lost in April due to the coronavirus pandemic.
Investors are betting that May will mark the bottom for the economy as businesses begin to reopen.
Chart of the daily percent change in the S&P 500 over the past 11 trading days
“The economy and the stock market have generally moved in the same direction over time, though rarely in lock-step,” said Willie Delwiche, investment strategist at Baird, in a note. “The gulf between current headlines for Wall Street (best 50-day rally ever for the S&P 500) and Main Street (one-in-four American workers have now filed for jobless benefits) seems more extraordinary than normal.”
American Airlines jumped 12% in premarket trading Friday. United Airlines shares surged 9%. The US Global Jets ETF is up 27% this week.
MGM Resorts jumped 4% in the premarket.
“While not looking past the current pain, the hope is that from these moments of uncertainty, a path toward a more hopeful future (and more robust economic participation) will emerge,” said Delwiche.
On Thursday, the S&P 500 and Nasdaq Composite each snapped a four-day winning streak, while the Dow eked out a minuscule gain. The Nasdaq-100 index briefly touched a record high before rolling over to close more than 0.7% lower.
Wall Street’s first decline for the month of June came after a report showing an unexpected rise in continuing jobless claims last week. Initial claims for state unemployment benefits also rose more than expected.
Earlier this week, data compiled by ADP and Moody’s Analytics showed private payrolls dropped by 2.76 million last month. That was much less than the 8.75 million drop that was forecast.
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