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Aug 5, 2016

U.S. Stock Market Future Indications Update, by MarketWatch - August 5, 2016




marketwatch.com

U.S. stock futures jump after stellar jobs report

Anora Mahmudova, Sara Sjolin

U.S. stocks were on track to finish the week on a high note as futures extended gains after an upbeat employment report pointed to continued improvement in the labor market.
The U.S. economy added 255,000 jobs last month, which follows a strong gain in June, showing the economy is still quite healthy despite somewhat slower growth. The unemployment rate was unchanged at 4.9% even as the labor-force participation rate edged up to 62.8%, suggesting the labor market is tightening. There was also an uptick in wages.
Futures for the Dow Jones Industrial Average YMU6, +0.59%  rose 90 points, or 0.5%, to 18,364, while S&P 500 index futures ESU6, +0.36%  gained 7 points, or 0.3%, to 2,166. Nasdaq-100 index futures NQU6, +0.42%  climbed 18 points, or 0.4% points, to 4,762.
Still, the gains in the market were modest, as investors began pricing in the impact of the jobs report on the Federal Reserve’s monetary policy.
Expectations for a rate increase this year, going by the CME FedWatch tool, increased after the jobs report. The tool now indicates an 18% chance of a rise in September, a 20% chance in November and 43% in December.
The muted gains follow a mostly flat close on Thursday, when investors brushed off aggressive monetary easing at the Bank of England and stuck to the sidelines. The S&P 500 index SPX, +0.02%  closed virtually flat at 2,164.25, while the Dow average DJIA, -0.02% also ended near break-even at 18,352.05.
For the week, the main indexes are likely to finish flat, with only the Nasdaq Composite Index COMP, +0.13%  is set for a small gains.
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Movers and shakers: Shares of FireEye Inc. FEYE, -3.01%  sank 14% ahead of the bell. The security-software company late Thursday reported disappointing earnings and announced plans for hundreds of job cuts.
Zynga Inc. ZNGA, +0.34%  slumped 7.4% premarket after the videogame developer late Thursday released a weak revenue outlook for the third quarter.
Hortonworks Inc. HDP, -0.47%  tanked 30% premarket after late Thursday lowering its revenue forecast and reporting a loss for the second quarter.
On a more upbeat note, Kraft Heinz Co. KHC, +0.75%  picked up 4.4% in premarket trade. The food giant on Thursday reported stronger-than-expected earnings in the second quarter.
GoDaddy Inc. GDDY, +12.26%  soared 24% ahead of the bell in thin trade, building on a 12% gain from Thursday when investors cheered a narrower loss for the second quarter.
On Friday, Virgin America Inc. VA, -0.34%  and Liberty Media Corp. LMCA, -0.23% are slated to report earnings before the open.
Other markets: The dollar slipped against most other major currencies ahead of the jobs data, with the ICE dollar index DXY, +0.55%  down 0.2% to 95.565.
The pound GBPUSD, -0.5493%  recovered a part of its post-BOE losses on Friday, rising to $1.3171 from $1.3108 late Thursday in New York. Sterling sank the most in a month on Thursday after the BOE cut interest rates and announced an aggressive plan to buy both corporate and government bonds in bid to soothe the economy after the U.K.’s Brexit vote.
The easing measures continued to propel European markets higher on Friday, while Asia closed mixed.
Oil futures CLU6, -0.55%  declined, and gold prices inched higher.