Futures Turn Positive Following Closely Watched Jobs Report

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 07 July 2023 09:42:45 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to regain ground following the sell-off seen in the previous session. The futures turned positive as the Labor Department?s closely watched monthly jobs report showed employment increased by less than expected in June, easing concerns about the outlook for interest rates. The Labor Department said non-farm payroll employment jumped by 209,000 jobs in June after surging by a downwardly revised 306,000 in May. Economists had expected employment to shoot up by 225,000 jobs compared to the spike of 339,000 jobs originally reported for the previous month. Meanwhile, the report showed the unemployment rate edged down to 3.6 percent in June from 3.7 percent in May, in line with economist estimates. While the Federal Reserve is still widely expected to raise interest rates by another quarter point later this month, the data may lead to renewed optimism that will be the end of the central bank?s rate-hiking cycle. Stocks saw significant weakness during trading on Thursday, extending the pullback seen during Wednesday's session. The major averages regained some ground after an early sell-off but remained notably lower. After tumbling by more than 500 points in morning trading, the Dow ended the day down 366.38 points or 1.1 percent at 33,922.26. The Nasdaq slumped 112.61 points or 0.8 percent to 13,679.04 and the S&P 500 slid 35.23 points or 0.8 percent to 4,11.59. With the extended pullback, the Nasdaq and S&P 500 continued to give back ground after inching up to their best closing levels in over a year on Monday. The early sell-off on Wall Street came as a batch of largely upbeat U.S. economic data added to concerns about the outlook for interest rates following Wednesday's hawkish Federal Reserve minutes. Before the start of trading, payroll processor ADP released a report showing much stronger than expected private sector job growth in the month of June. ADP said private sector employment spiked by 497,000 jobs in June after jumping by a downwardly revised 267,000 jobs in May. Economists had expected private sector employment to increase by 228,000 jobs compared to the addition of 278,000 jobs originally reported for the previous month. While the surge in private sector employment paints a positive picture of the economy, continued strength in the labor market may convince the Fed to resume raising interest rates. The Fed, which is due to announce its next interest rate decision later this month, has previously warned about the impact of labor market tightness. The Institute for Supply Management also released a report showing the pace of growth in the service sector accelerated by much more than expected in June. The ISM said its services PMI climbed to 53.9 in June from 50.3 in May, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 51.0. Airline stocks turned in some of the market's worst performances on the day, resulting in a 3.8 percent nosedive by the NYSE Arca Airline Index. JetBlue (JBLU) posted a steep loss after saying it would follow a judge's order to end its partnership with American Airlines (AAL) in the Northeast in an effort to salvage its planned $3.8 billion acquisition of Spirit Airlines (SAVE). Substantial weakness was also visible among oil stocks, as reflected by the 2.6 percent tumble by the NYSE Arca Oil Index. The weakness in the sector came even as the price of crude oil ended the day roughly flat. Housing stocks also showed a significant move to the downside, with the Philadelphia Housing Sector Index plunging by 2.4 percent. Gold, steel and banking also saw considerable weakness on the day, moving lower along with most of the other major sectors. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( A closely watched report released by the Labor Department on Friday showed employment in the U.S. increased by less than expected in the month of June. The Labor Department said non-farm payroll employment jumped by 209,000 jobs in June after surging by a downwardly revised 306,000 in May. Economists had expected employment to shoot up by 225,000 jobs compared to the spike of 339,000 jobs originally reported for the previous month. Meanwhile, the report showed the unemployment rate edged down to 3.6 percent in June from 3.7 percent in May, in line with economist estimates. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Europe European stocks are turning in a mixed performance on Friday after falling sharply in the previous session amid concerns that higher interest rates may weigh on global economic growth. While the U.K.?s FTSE 100 Index is down by 0.4 percent, the German DAX Index is up by 0.4 percent and the French CAC 40 Index is up by 0.5 percent. Data showed earlier in the day that German industrial production declined more than expected in May. Industrial production posted a monthly fall of 0.2 percent in May in contrast to the 0.3 percent increase in April, according to figures from Destatis. Output was forecast to drop 0.1 percent. On a yearly basis, industrial production grew 0.7 percent, following a 1.7 percent increase in April. Elsewhere, U.K. house prices declined at the fastest pace in twelve years in June as rising interest rates dampened demand, results of a survey by Lloyds Bank subsidiary Halifax showed. House prices fell 2.6 percent on a yearly basis in June, which was the biggest decrease since June 2011. This followed a 1.1 percent drop in May. House prices edged down 0.1 percent on a monthly basis in June following a 0.2 percent decrease in May. This was the third consecutive decline. Clariant AG shares have soared despite the Swiss specialty chemicals firm reporting weak preliminary sales in its second quarter and lowering its 2023 guidance. Bottler Coca-Cola HBC has also shown a substantial move to the upside after upgrading its 2023 earnings guidance. Meanwhile, homebuilders Barratt Developments, Taylor Wimpey and Persimmon have moved lower in London on concerns how deep or persistent the downturn in house prices will be. Oil & gas major Shell has edged down slightly after it projected post tax impairments of up to $3 billion for the second quarter, primarily driven by a 1 percent increase in the discount rate used for impairment testing. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks declined on Friday after Wall Street's main indexes fell sharply overnight on fears of more interest rate hike by the Federal Reserve. U.S. private-sector payrolls expanded by 497000 in June, according to the payroll-services firm ADP, coming in well ahead of the downwardly revised 267,000 gain in May and the 220,000 consensus estimate. The U.S. services sector also grew faster than expected in June, raising fears of more interest rate hikes ahead by the Federal Reserve to keep inflation under control. The dollar held steady in Asian trading and Treasury yields hovered near their recent peaks, while gold headed for a fourth weekly loss. Oil prices rose about 1 percent and were on track for their second straight weekly gain amid signs of supply tightness. Chinese shares ended slightly lower to extend losses for a third day running amid a lack of clarity on Beijing's stimulus measures to prop up growth. The benchmark Shanghai Composite Index slipped 0.3 percent to 3,196.61. Hong Kong's Hang Seng Index dropped 0.9 percent to 18,365.70. Japanese shares tumbled after government data showed household spending in the country fell 4.0 percent in May from a year earlier, marking a third month of decline. The Nikkei 225 Index slumped 1.2 percent to 32,388.42, extending losses for a fourth consecutive session on Fed tightening concerns. The broader Topix Index settled 1.0 percent lower at 2,254.90 with appliance makers Sharp Corp. and Panasonic ending down around 3 percent each. Drug maker Eisai plunged 4.7 percent despite winning a coveted standard approval nod from the U.S. FDA for its Leqembi Alzheimer's treatment. Seoul stocks lost ground as chipmakers came under selling pressure on U.S. rate hike woes. The Kospi closed 1.2 percent lower at 2,526.71. Samsung Electronics shed 2.4 percent after the world's largest memory chip and smartphone maker reported a likely 96 percent plunge in second-quarter operating profit. No. 2 chipmaker SK Hynix gave up 1.8 percent. Australian markets fell the most in two weeks, with heavyweight mining and financial stocks bearing the brunt of the selling. The benchmark S&P/ASX 200 Index dropped 1.7 percent to 7,042.30, while the broader All Ordinaries Index ended down 1.6 percent at 7,244.10. BHP gave up 1.8 percent and Rio Tinto shed 0.7 percent, tracking a fall in iron ore prices after China's top steel-producing city of Tangshan ordered an output cut for July. The big four banks fell between 1.1 percent and 1.7 percent. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are edging up $0.05 to $71.85 a barrel after inching up $0.01 to $71.80 a barrel on Thursday. Meanwhile, after falling $11.70 to $1,915.40 an ounce in the previous session, gold futures are rising $5.80 to $1,921.20 an ounce. On the currency front, the U.S. dollar is trading at 142.94 yen versus the 144.07 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0912 compared to yesterday?s $1.0889. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49