US stock index futures fell in early Friday after the July employment report showed the economy added slightly more jobs than expected, but at a slower pace than in previous months, as the US recovery slowed from rising cases of coronavirus in many states.
Rising tensions between Beijing and Washington after an executive order banning deals with a pair of technology-based companies in China may give some cause for caution.
How are reference shares traded?
Futures for Dow Jones Industrial Average YM00,
were 48 points, or 0.2%, lower at 27,222; those for the S&P 500 ES00 index,
traded 9.55 points, or 0.3%, at 3,335; while the Nasdaq-100 has NQ00 futures,
retreat 39.25 points, or 0.4%, at 11,211.75.
On Thursday, Dow DJIA,
rose 185.46 points, or 0.7%, to the end of 27,386.98; S&P 500 SPX,
rose by 21.39 points, or 0.6% to close at 3 349.16. Both benchmarks reserved five consecutive gains, with the Dow finishing 7.3% of its highest close at the highest level on February 12, while S&P closed 1.1% of its final record on February 19. Nasdaq Composite Index COMP,
gained 109.67 points, or 1%, finishing on 11.108.07 to book its 32nd record at the end of the year.
What drives the market
Bridal investors may have offered some support to broaden the uptrend for stocks after the job report showed the US added 1.76 million jobs in July – just a third of the unexpected profit of 4.8 million last month. , with the unemployment rate falling to 10.2% from 11.1% in June. Consensus estimates by economists surveyed by MarketWatch were for an increase of 1.7 million jobs per month.
Sean Cruz, trader’s strategy manager at TD Ameritrade, said the report offers a reason for investors to optimize and provides some indication that reopening the business could lead to a sharper kickback in the labor market after millions of workers Places have been lost by dropping out of the Covid19 pandemic.
“I think it could be good for the bulls. I think that shows that as we start to get easier [ social-distancing restrictions] you will see a pretty solid rebound in the workforce, “Cruz told MarketWatch in an interview after the results.
As of Friday morning, the global amount of confirmed cases of COVID-19 climbed to over 19 million on Friday, according to data collected by Johns Hopkins University, and the death toll rose to 715,163. The case in the United States rose to 4.9 million and deaths rose to more than 160,000 after the United States added another 1,000 deaths overnight and counted another 57,000 new deaths.
Friday’s report on unpaid staff comes from lawmakers in Washington, who are seeking more than $ 1 trillion in unemployment benefits for Americans after a $ 600 a week unemployment benefit expired last month.
President Donald Trump said on Thursday that he could sign an executive order to provide new assistance to the unemployed, but the president’s powers appear to be limited to what can be done if action is taken to provide fresh funds without the approval of Congress.
However, the steady rise in shares suggests that investors are betting that at some point an additional round of aid is forthcoming.
Meanwhile, President Donald Trump signed an executive order Thursday banning transactions with the parent companies of Chinese social media companies TikTok and Tencent TCEHY.
as the president tries to force the acquisition of TikTok’s US arm by mid-September over the next 45 days. In response, TikTok, which is owned by China-based ByteDance, has threatened to sue the president, reflecting growing Sino-US tensions.
Read: The July job report could be a “nail in the coffin” for higher prices
In other economic reports, investors will monitor for 10 am reading wholesale and consumer credit report
How were other markets traded?
The ten-year profitability of the TMUBMUSD10Y cash register,
was slightly changed to 0.535% after the job report. Bond prices are moving back in return.
The greenback equaled some of its gains after non-family payments with the ICE US Dollar DXY index,
an increase of 0.3% at 93,016.
In Europe, the SXXP index of Stoxx Europe 600,
traded less than 0.1 and FTSE 100 UKX,
fell less than 0.1%.
In Asia, the Chinese index CSI 300 000300,
trade ended 1.2%, while the Japanese benchmark Nikkei NIK,
closed 0.4% lower. The Hong Kong Hang Seng HSI Index,
US benchmark CL.1,
oil was down 1.1 percent to trade at $ 41.51 a barrel on the New York Mercantile Exchange. December gold futures GCZ20,
aimed for the sixth consecutive day of gains and were up $ 4.70, or 0.3%, at $ 2,074.10 per ounce, less than 0.1%.