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Aug 5, 2016

U.S. Stock Market Future Indications, by MarketWatch on August 5, 2016: U.S. Stocks Set for gains as Traders Brace for Upbeat Jobs Reports Stocks

Sara Sjolin

Wall Street was gearing up for a mildly positive trading day on Friday, with stock futures tilting higher ahead of what is expected to be a fairly solid U.S. jobs report.
Futures for the Dow Jones Industrial Average YMU6, +0.19%  rose 25 points, or 0.1%, to 18,298, while those for the S&P 500 index ESU6, +0.22%  gained 2.95 points, or 0.1%, to 2,162.25. Futures for the Nasdaq 100 index NQU6, +0.22%  climbed 8 points, or 8 points, to 4,751.75.
The muted gains follow a mostly flat close on Thursday, when investors brushed off aggressive monetary easing at the Bank of England and took risk off the table ahead of the closely watched nonfarm payrolls report for July. 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, only the Nasdaq Composite Index COMP, +0.13%  is set for a small gains, while the two others are poised for losses.
Jobs frenzy: In the two previous months, the nonfarm payrolls number has ranged from 11,000 jobs being added in May to 287,000 in June, but analysts are predicting a less dramatic reading in July. Economists polled by MarketWatch expect 185,000 new jobs last month.
Read: July jobs report: Will it be dazzling, ugly or more in line?
“Today will represent a possible significant event when it comes to determining confidence in the U.S. interest rate policy outlook for 2016,” said Jameel Ahmad, market analyst at FXTM, in a note.
“We likely need a number above 200,000 to be provided with the necessary confidence that the Federal Reserve can raise interest rates at least once in 2016,” he added.

The global luxury-goods industry is hurting as consumers pare back spending in the wake of terror attacks and economic uncertainty.
Traders are currently not pricing in a rate hike this year, going by the CME FedWatch tool. The tool indicates an only 9% chance of a rise in September, a 10.9% chance in November and 32.1% in December.
The unemployment rate for July is expected to drop to 4.8% from 4.9% in June, while average hourly earnings are seen picking up 0.2%. All the labor-market data come out at 8:30 a.m. Eastern Time.
At the same time, the foreign trade deficit for June is due, followed by consumer credit for the same month at 3 p.m. Eastern.
There were no Fed speakers on tap for Friday.
Movers and shakers: Shares of FireEye Inc. FEYE, -3.01%  sank 17% 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 4.4% premarket after the videogame developer late Thursday released a weak revenue outlook for the third quarter.
On a more upbeat note, Kraft Heinz Co. KHC, +0.75%  picked up 4.1% in thin premarket trade. The food giant on Thursday reported stronger-than-expected earnings in 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, -0.14%  down 0.2% to 95.602.
The pound GBPUSD, +0.2441%  recovered a part of its post-BOE losses on Friday, rising to $1.3139 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 prices CLU6, -1.03%  declined, and gold prices inched higher.