Dow Futures Get Big Lift From Blowout Jobs Report

The unemployment rate fell to 3.5% in November

Managing Editor
Dec 6, 2019 at 9:22 AM
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Stock futures are pointed confidently higher to end the week, as Wall Street reacts to a blowout jobs report. The Labor Department said the U.S. added 266,000 jobs in November -- handily toppling estimates for 187,000 new positions -- while the unemployment rate dipped to 3.5%. Dow Jones Industrial Average (DJI) futures, which were initially higher on reports China will waive import tariffs on some U.S. pork and soybean shipments, have extended their lead, while the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also signaling positive starts.

Continue reading for more on today's market, including: 

  • Behind Goldman's big bull note for Nike stock
  • The restaurant stock to take a bite out of right now. 
  • Plus, ULTA reports big earnings beat; Tesla gets good China news; and Kate Spade's Tapestry downgraded.  

Stock Futures Chart Dec 6

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 772,662 call contracts traded on Thursday, compared to 503,919 put contracts. The single-session equity put/call ratio climbed to 0.65, while the 21-day moving average stayed at 0.59.
  2. Ulta Beauty Inc (NASDAQ:ULTA) stock is up 8.7% in electronic trading, after the cosmetics retailer reported third-quarter earnings that topped analyst forecasts. Revenue and same-store sales came in roughly on par with estimates, too, and five brokerages have responded with price-target hikes this morning, the highest coming from J.P. Morgan Securities to $326 from $317. ULTA is poised to reclaim its year-to-date breakeven level today.
  3. Tesla Inc (NASDAQ:TSLA) stock is up 1.5% ahead of the bell, after the electric car company secured energy vehicle subsidies for its China-built Model 3. Morgan Stanley also chimed in, and upped its "bull case" on Tesla to $500, while keeping its overall price target at $250. The analyst laid out an optimistic scenario for the company's new Cybertruck. 
  4. The shares of Tapestry Inc (NYSE:TPR) are 1% lower ahead of the bell, after Evercore cut its rating on the luxury retailer to "in-line" from "outperform." The brokerage firm also trimmed its price target to $25 from $32, noting a trend shift to more casual lifestyle clothing. TPR is down 24.6% in 2019, and has spent the last three months consolidating below the $26 level.
  5. The University of Michigan's consumer sentiment index and wholesale inventories will be released today. Big Lots (BIG) is scheduled to report earnings.

Buzz Chart Dec 6

Asian Markets Climb; European Stocks Take Cues From Jobs Report

It was mostly a positive session for Asian stock markets today. China's Shanghai Composite closed up with a 0.4% gain, grabbing its highest close since Nov. 19. It was an even stronger session for the Hang Seng in Hong Kong, as the index rose 1.1%. In South Korea, the Kospi closed up 1%, and Japan’s Nikkei tacked on 0.2%.

European stocks are also on the rise today, extending their lead, as of this writing, thanks to the upbeat jobs data out of the U.S. The FTSE 100 in London was last seen with a 0.9% gain, pacing the major indexes in the region. Meanwhile, the French CAC 40 is up 0.4%, and Germany’s DAX has managed a 0.2% advance, with lackluster industrial output from Europe’s largest economy likely holding back its flagship index.

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