U.S. stocks are set to close the week lower once again
Dow Jones Industrial Average (DJIA) futures are trading above fair value, as stocks react to the release of the nonfarm payrolls report for June. Specifically, payrolls increased by 222,000, compared to estimates of 178,000. However, the unemployment rate held at a slightly higher-than-forecast 4.4%, and wage growth was muted.
In addition to the jobs report, oil prices will likely remain in focus. Following
yesterday's surge, August-dated crude futures are trading 2.1% lower at $44.57 per barrel, as oversupply concerns continue to plague the commodity. Against this backdrop, the major equity indexes are set to close lower for a second straight week.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Chicago Board Options Exchange (CBOE) saw 730,025 call contracts traded on Thursday, compared to 476,425 put contracts. The single-session equity put/call ratio rose to 0.65, and the 21-day moving average moved up to 0.64.
- QUALCOMM, Inc. (NASDAQ:QCOM) is trying to prevent certain iPhones and iPads from being sold in the U.S., claiming the devices infringe on QCOM patents. This isn't the first round of litigation for Apple Inc. (NASDAQ:AAPL) and QCOM, and traders seem relatively unbothered; both stocks are little changed in pre-market trading.
- Campbell Soup Company (NYSE:CPB) has announced it's buying Pacific Foods for $700 million in cash. CPB stock has been trending lower since its February bear gap, and touched an annual low of $51.62 just yesterday.
- Mondelez International Inc (NASDAQ:MDLZ) is down 0.7% ahead of the open, after the company said second-quarter revenue will be weaker than expected due to the global cyber attack in late June. MDLZ stock has bounced around over the past 12 months amid M&A speculation, and as of Thursday's close at $43.06, was trading just below its year-to-date breakeven point.
- There are no notable earnings reports due today, but second-quarter earnings start to trickle in next week. Reports from Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC) will hit the Street before the open next Friday, July 14.
Overseas Trading
It was another down day for most Asian equity markets, tracking Thursday's sell-off on Wall Street. In Tokyo, the yen weakened in the face of concerted bond-buying efforts by the Bank of Japan, with the Nikkei shedding 0.3% to deepen its retreat below 20,000. Following suit, Hong Kong's Hang Seng gave up 0.5%, while South Korea's Kospi slid 0.3%. Stocks in mainland China once again shook off regional selling pressure, with the Shanghai Composite closing up 0.2%.
European stocks are mixed at midday, as traders keep a wary eye trained on the G-20 summit. The energy sector is a particular pocket of weakness due to slipping oil prices, with Brent crude futures off 2%. At last check, London's FTSE 100 has edged up 0.06% -- but the German DAX is down 0.3%, while France's CAC 40 has pulled back 0.4%.