Traders work on the trading floor of the New York Stock Exchange on April 25, 2024.
Brendan McDermid | Reuters
U.S. stock futures opened little changed on Friday as investors prepared for Friday morning’s non-farm payrolls report.
Futures and Dow Jones Industrial Average It rose slightly by 67 points, or 0.18%. Nasdaq 100 Futures rose 0.17%, while S&P 500 Index Futures up 0.13%
In regular transactions, Dow Chemical It rose 78.84 points, or 0.20%. this S&P 500 Index fell slightly by 0.02%, Nasdaq Index down 0.09%.
All three major averages are poised for victory this week. The Dow Jones rose 0.52%, the S&P 500 rose 1.43%, and the Nasdaq rose 2.62%.
Investors are looking forward to the May non-farm payrolls report due out at 8:30 a.m. ET on Friday. They will be looking for signs of labor market weakness, as evidence of an economic slowdown could support a rate cut by the Federal Reserve. Economists surveyed by Dow Jones expected 190,000 jobs to be added and wages to rise 3.9% annually.
Ed Klissold, chief U.S. strategist at Ned Davis Research, said the economic slowdown is just one reason why the overall market remains bullish this year.
“There’s not a lot of reason for us to end what has been a very good year so far,” he said Thursday on CNBC’s “Closing Clock.” “The first-quarter earnings season is coming to an end, and more than 80% of companies have beaten expectations. Earnings growth looks set to accelerate in the second quarter. We’re looking at a slowdown and not an immediate recession. The over-optimism we saw in March has largely resolved.
He added: “In most cases, this is a bull market unless it turns out otherwise.”
Ahead of the jobs report, the European Central Bank cut interest rates for the first time since 2019 on Thursday, adding pressure on the Federal Reserve to possibly loosen policy.
The Federal Reserve will make an interest rate decision after its policy meeting on June 11-12 next week. Federal funds futures trading data shows that the Fed is likely to keep interest rates steady this time, but that means there is about a 70% chance that policymakers will ease policy in September. CME Group Fed Watch Tool.
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