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Jul 2, 2020

US Market | Futures Indicator: Dow futures up more than 200 points after Nasdaq hits record to start third quarter

Thomas Franck

Futures contracts tied to the major U.S. stock indexes rose early Thursday as investors awaited two closely watched jobs reports on the week’s final day of trading ahead of the July Fourth holiday.
Dow Jones Industrial Average futures indicated an opening gain of more than 200 points. S&P 500 futures and Nasdaq-100 futures also traded in positive territory.
The premarket moves Thursday followed the market’s first trading day in the third quarter. Both the S&P 500 and Nasdaq Composite gained during the regular session on Wednesday, with the latter jumping more than 1% to an all-time high.

Though the Dow Jones Industrial Average lagged on Wednesday with a modest loss, all three major indexes are on track for sizable weekly gains. The S&P 500, Dow and Nasdaq Composite are up 3.5%, 2.8% and 4%, respectively, since Friday’s close.
U.S. markets will be closed on Friday for the July Fourth holiday.
Though traders accredited Wednesday’s gains to optimism over a Covid-19 vaccine being developed by Pfizer and BioNTech, Thursday’s multiple jobs reports loom large into the holiday weekend.
The closely-watched monthly employment report, set to be released Thursday at 8:30 a.m., has proven difficult for market watchers to forecast of late. Last month, economists forecast a loss of 8 million jobs in May and the economy gained 2.5 million payrolls instead.
Economists expect nearly 3 million jobs were created in June, as companies rehired workers they let go when the economy shut down. Consensus estimates also forecast the unemployment rate falling to 12.4% from 13.3% in May.

Meanwhile, the weekly jobless claims data will also be released Thursday morning. 
The weekly claims data will provide Wall Street with a better sense of how many are still collecting unemployment benefits, a figure known as continuing claims. Last week, the Labor Department said there were still nearly 20 million collecting state unemployment benefits during the week ended June 20.

Another 1.38 million workers are expected to have filed initial claims for state unemployment benefits last week, down from 1.48 million the week earlier.

CNBC’s Patti Domm contributed reporting.

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