As traders prepare for the opening bell on Friday, Wall Street futures are indicating a moderately lower start. Investors are likely taking precautions ahead of what is anticipated to be a soft August jobs report, which may signal broader economic challenges. The employment situation bulletin is set to be released at 8:30 am ET, with economists predicting a non-farm payroll growth of around 160,000, a significant increase from July's figure of 114,000.
This report will serve as a crucial indicator of the labor market’s health amidst ongoing economic fluctuations. In a related context, the most recent ADP report suggests that private sector employment added only 99,000 jobs last month. This figure is notably lower than the 145,000 jobs that were expected, further intensifying concerns about the economic trajectory. In pre-market trading, the S&P 500 index has fallen by 0.6%, while the Nasdaq Composite has declined by 1.1%, and the Dow Jones Industrial Average is down by 0.3%.
Crude oil prices in the domestic market remain cautious, trading under the crucial $70 per barrel mark, with benchmark 10-year US Treasuries hovering near an interest rate of 3.70%. Asian financial markets experienced a turbulent session overnight; notably, Hong Kong markets are on high alert due to a typhoon warning, causing further volatility.
Meanwhile, European exchanges also tracked lower during midday trading, reflecting the prevailing cautious sentiment in the markets. A significant player in the market today is Broadcom (AVGO), whose shares plummeted by 8% in pre-bell trading. The semiconductor and software behemoth managed to meet its fiscal Q3 earnings expectations; however, the company issued guidance that was perceived as lackluster, sparking concerns among investors. The economic calendar is packed today beyond the jobs report.
At 1 pm ET, the Baker Hughes domestic oil-and-gas rig count will be released, an important barometer for the energy sector. Additionally, key figures from the Federal Reserve are slated to speak; New York Federal Reserve President John Williams will address the audience at 8:45 am, followed by Fed Governor Christopher Waller at 11 am. In pre-market trading action, Bitcoin is showing resilience, trading at approximately $56,210.
In the energy sector, West Texas Intermediate crude is trading steady near $69.20, and 10-year US Treasuries are offering an interest rate of 3.70%. Spot gold is trading at an impressive $2,518 per ounce, indicating investor interest in safe-haven assets amid uncertainty. Investors keenly await further developments and data that will provide insight into the future direction of the economy and the markets..