The Dow has pared its pre-market gains after May's jobs report fell short
Dow Jones Industrial Average (DJIA) futures have pared a portion of their earlier gains, but are still trading above fair value, as Wall Street digests this morning's nonfarm payrolls report. The Labor Department said the U.S. economy added 138,000 jobs last month, below the expected 185,000. The unemployment rate fell to 4.3% -- a 16-year low -- while hourly wages edged up 0.2%. The jobs data could impact the odds of a June rate hike at the upcoming Fed meeting.
Even with July-dated crude futures sinking 2.3% to $47.25 per barrel on concerns the U.S. withdrawal from the Paris climate agreement will increase domestic drilling, today's pre-market move could have the Dow taking aim at an all-time peak. Not to be outdone, the
S&P 500 Index (SPX) and
Nasdaq Composite (COMP) could also notch new
record highs out of the gate.
Continue reading for more on today's market, including:
- Why it may be time to sell these 25 stocks.
- How options traders profited big off the energy sector's decline.
- In case you missed it, this rare VIX signal just flashed.
- Plus, Lululemon stock swings higher; the Apple supplier headed to new highs; and the retail stock slumping to new lows.
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 801,253 call contracts traded on Thursday, compared to 526,473 put contracts. The single-session equity put/call ratio rose to 0.66, and the 21-day moving average remained at 0.63.
- Lululemon Athletica inc. (NASDAQ:LULU) shares are set to continue their history of volatile post-earnings moves, after the yoga apparel maker reported a first-quarter earnings beat and said it will close most of its kids-focused Ivivva stores. A pair of price-target hikes is adding to the buzz, though FBR lowered its target price. Nevertheless, LULU stock is up 15.5% in electronic trading.
- Broadcom Ltd's (NASDAQ:AVGO) fiscal second-quarter earnings came in above the consensus estimate, with the chipmaker also projecting a 40% current-quarter content increase at Apple. A number of analysts raised their price targets on AVGO stock in response, with the shares up 5.3% ahead of the bell -- on track to open at a record high.
- Zumiez Inc. (NASDAQ:ZUMZ) is set to follow in the post-earnings footsteps of Express, as the retailer's dreary current-quarter forecast overshadows a first-quarter earnings beat. ZUMZ stock is down 8.3% in electronic trading, set to open the session at a new annual low.
- Hovnanian Enterprises (HOV) and ReneSola (SOL) will report earnings.
Overseas Trading
Asian stocks followed their U.S. counterparts higher, with Japan's Nikkei leading the way once again. The index closed up 1.6%, topping the closely watched 20,000 level, as a cooling yen helped buoy stocks. Another big winner was South Korea's Kospi, which added 1.2% following an upbeat GDP report. Turning to China, the Shanghai Composite managed just a 0.1% rise, as traders expressed ongoing concern about this week's disappointing manufacturing data. Rounding out the region, the Hang Seng closed up 0.4%.
European stock indexes are also sporting broad gains at midday, with London's FTSE 100 and Germany's DAX both hitting record highs. Bank stocks were some of the best performing securities, while the energy sector struggled amid falling oil prices. The FTSE 100 was last seen up 0.3%, France's CAC 40 has added 0.8%, and the DAX has rallied 1.6%.