Stock Futures Fall on Strong November Jobs Report

Treasury yields are surging after average hourly earnings doubled estimates

Deputy Editor
Dec 2, 2022 at 9:17 AM
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Stock futures are sharply lower this morning, as investors pore over November's jobs report. According to the Labor Department, nonfarm payrolls increased by 263,000, which is higher than economists anticipated. Plus, average hourly earnings doubled expectations with a 0.6% rise, crushing hopes of slowing rate hikes and sending Treasury yields higher. At last check, Dow Jones Industrial Average (DJI) futures are eyeing a 378-points drop, while futures on the S&P 500 (SPX) and Nasdaq-100 (NDX) are firmly lower as well.

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

  • The best tech stock to own this month.
  • Why options bulls love this grocery stock.
  • Plus, DoorDash stock downgraded; unpacking Zscaler's earnings; and RIGL surges on FDA approval. 

Futures Chart December 022022

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.6 million call contracts and 1.3 million put contracts traded on Thursday. The single-session equity put/call ratio fell to 0.81, while the 21-day moving average stayed at 0.72.
  2. DoorDash Inc (NYSE:DASH) is 6.1% lower before the bell, after RBC Capital Markets downgraded the security to "sector perform" from "outperform." While the brokerage firm praised DoorDash's execution and management, it said it's uncomfortable with the delivery service's valuation. Year-over-year, DASH is roughly 65% lower.
  3. Despite reporting fiscal first-quarter earnings and revenue that beat analysts' estimates, Zscaler Inc (NASDAQ:ZS) is still 11.4% lower premarket, after the company issued a conservative outlook. The cloud security name is facing multiple headwinds, and noted its customers are taking longer to close new deals. Coming into today, ZS already carried a 55% year-to-date deficit. 
  4. Rigel Pharmaceuticals Inc (NASDAQ:RIGL) stock is surging before the open, after the company's leukemia treatment received approval from the U.S. Food and Drug Administration (FDA). Last seen up 37.2%, RIGL still sports a 74.2% deficit in 2022, though.
  5. Today, Wall Street will also unpack the unemployment rate and the labor-force participation rate for 25- to 54-year-olds.

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Covid-19 Restrictions in China Remain Murky

Asian markets dropped on Friday as China’s easing Covid-19 restriction rules remain murky. The Nikkei in Japan lost 1.6%, while the South Korean Kospi shed 1.8%, and the Hong Kong Hang Seng and China’s Shanghai Composite both shed 0.3%. On the data front, South Korea reported annualized inflation of 5% for November, just below analyst estimates.

European markets are mixed midday as investors await the results of jobs data over in the U.S. The European Union is exploring the possibility of capping Russian seaborne oil at $60 per barrel. At last glance, the French CAC 40 is up 0.2% and the London FTSE 100 is off 0.1%. The German DAX is higher, however, last seen up 0.6% as it tries to brush off a deeper-than-expected drop in October exports.

 

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