Dow Futures Dip on Disappointing Jobs Data

The unemployment rate rose more than expected

Deputy Editor
May 7, 2021 at 9:15 AM
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Stock futures are mixed today, with the Dow Jones Industrial Average (DJI) down around 60 points following a miss on April's non farm payrolls report, which showed an increase of 266,000, compared to the expected 1 million. Digging deeper, the blue-chip index -- fresh off two-straight record closes -- is also suffering after data showed the unemployment rate rose to 6.1% last month, versus the anticipated 5.8%. Meanwhile, S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are in the black, after the 10-year Treasury yield dropped 5 basis points, triggering a jump in tech stocks.

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

  • A few useful ways to analyze market performance
  • Regeneron stock rose after a stellar earnings report.
  • Plus, Beyond Meat stock notches bear notes; Peloton's expectations after recall; and Cinemark gears up to reopen.

Futures Chart May 7

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.5 million call contracts traded on Thursday, and 877,999 put contracts. The single-session equity put/call ratio rose to 0.57 and the 21-day moving average rose to 0.48.
  2. The shares of Beyond Meat Inc (NASDAQ:BYND) are plunging, down 8.3% ahead of the open and has suffered at least four price-target cuts, after the company reported first-quarter losses and revenue that missed Wall Street's estimates. According to the plant-based burger maker, the pandemic has taken a big toll on demand. Nearing 2021's halfway mark, BYND is down 4.8% on the year.
  3. Meanwhile, Peloton Interactive Inc (NASDAQ:PTON) is surging, last seen up 6.8% before the bell, despite anticipating a hit of $165 million after recalling its treadmills. In addition, the company cut its sales and profit forecast for the current fiscal year, but reported smaller-than-expected losses and revenue. In response, a slew of bear notes have come in for the exercise equipment concern. Year-to-date, PTON is down 44.8%.
  4. Movie theater operator Cinemark Holdings, Inc. (NYSE:CNK) is brushing off first-quarter losses that were larger than Wall Street expected. Instead, the equity is getting a bump from a revenue beat, paired with optimistic comments regarding theater reopenings and the summer movie season. Last seen up 0.8% in electronic trading, CNK has tacked on 17.7% in 2021.
  5. Today features nonfarm payrolls, an update on the unemployment rate, and average hourly earnings. Wholesales inventories and consumer credit data is also due out.


European Markets Extend Wins on Adidas Earnings

Asian markets were mixed to close out the week, as investors continued to wait for the results of the U.S. jobs report. Leading the gainers was South Korea’s Kospi, which added 0.6%, followed by Japan’s Nikkei’s modest 0.09% gain. Meanwhile, China’s Shanghai Composite dropped 0.7%, and Hong Kong’s Hang Seng finished slightly below breakeven with a 0.09% loss.

Markets across the pond are higher, however, amid rising commodity prices and another batch of corporate earnings, including blowout reports from Adidas and Siemens. In other news, the European Union (EU) seemed supportive of waiving patent protections for Covid-19 vaccines, and investors are eyeing election results across the U.K. In turn, the German DAX was last seen up 1.3%, London’s FTSE 100 is up 0.6%, and France’s CAC 40 has added 0.2%.


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