Stock Futures Respond Favorably to May Jobs Data

Nonfarm payrolls shows 559,000 jobs added in May

Assistant Editor
Jun 4, 2021 at 9:17 AM
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Stock futures are eyeing a modest open higher this morning, looking to pare yesterday's lossesDow Jones Industrial Average (DJI)Nasdaq-100 Index (NDX), and S&P 500 Index (SPX) futures are all poised for comfortable gains amid encouraging jobs data for May. The U.S. added 559,000 jobs last month, lower than the 671,000 estimate but a healthy figure compared to April's. Investors are also cheering the unemployment rate, which fell to a better-than-anticipated 5.8% from 6.1%. 

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

  • Buy the dip on Microsoft stock
  • Options bulls blasted General Motors stock amid record highs. 
  • Plus, DOCU boosted after earnings; Analyst drops BBBY coverage; and FIVE jumps after upbeat forecast.

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 2.3 million call contracts traded on Thursday, and 948,892 put contracts. The single-session equity put/call ratio rose to 0.41 and the 21-day moving average stayed at 0.51.
  2. DocuSign Inc (NASDAQ:DOCU) stock is up 6.3% in pre-market trading, after the company reported much better-than-expected first-quarter earnings of 44 cents per share, and revenue in line with estimates. To follow, Citigroup raised its price target to $288, while both Wedbush and Oppenheimer cut their price targets to $260, and J.P. Morgan Securities cut theirs to $255. 
  3. In a rare move, Bank of America Securities dropped its coverage on Bed Bath & Beyond Inc (NASDAQ:BBY). As the equity is one of the recent "meme stocks," the firm no longer sees the stock as trading on fundamentals. At last check, BBBY was up 0.3% in electronic trading.
  4. Five Below Inc (NASDAQ:FIVE) is up 6.8% before the bell, after the department store name announced better-than-expected first-quarter earnings and an upbeat forecast. No fewer than six analysts raised their price targets in response, with the highest from Jefferies to $300. 
  5. Today will bring nonfarm payrolls, a monthly unemployment rate update, average hourly earnings data, and factory orders numbers.

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Stocks Mostly Lower in Europe, Asia

Asian markets settled mostly lower on Friday, with the exception of the Shanghai Composite in China, which tacked on 0.2%. The Hong Kong Hang Seng dropped 0.2%, dampened by losses from Alibaba (BABA), which dropped even after its offshoot, Ant Group, gained approval to run a consumer finance company. Investors are also monitoring U.S. President Joe Biden’s decision to expand restrictions on American investments in a number of Chinese companies with suspected military and surveillance ties. Elsewhere in the region, the Nikkei in Japan dropped 0.4%, and the South Korean Kospi fell 0.2%. 

Over in Europe, the major bourses are struggling to gain traction, as investors eye an upcoming labor report in the U.S., which could be a deciding factor in several major inflation decisions both in Europe and abroad later this month. The London FTSE 100 is the biggest loser so far, off 0.2%, while the French CAC 40 is down 0.02%. The German DAX, meanwhile, is clinging to a 0.04% gain.

 

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