Opening Comment — Friday, October 04, 2024
DJIA: 42,011.59, down 184.93
S&P 500: 5,699.94, down 9.60
NASDAQ: 17,918.47, down 6.65
Stocks higher ahead of September jobs report
Stock futures are higher Friday morning ahead of the September jobs report and following news that U.S. dockworkers on the East and Gulf coasts will go back to work while a new contract is negotiated. As of 7:18 AM ET, the Dow is rising 0.1%, while the S&P 500 is up 0.3%. The Nasdaq 100 is increasing 0.4% relative to fair value on the GLOBEX.
U.S. equities were mostly lower on Thursday as the Institute for Supply Management’s (ISM’s) services Purchasing Managers’ Index (PMI) for September rose to 54.9, the highest level since February of 2023, following a sharp increase in orders. However, the prices paid component rose to the highest level since January and the employment component fell. Initial jobless claims rose more than projected, while continuing jobless claims and factory orders unexpectedly fell. The Dow was down 0.4%, while the tech-heavy Nasdaq Composite was little changed. The S&P 500 decreased 0.2% with eight of 11 sectors finishing in negative territory. The Energy sector was the top performer, rising 1.6%, while the Consumer Discretionary sector was the bottom performer, falling 1.3%.
On the data front today, September’s nonfarm payrolls are expected to have increased by 150,000, versus the prior month’s increase of 142,000, while manufacturing payrolls are expected to have fallen by 8,000 versus the prior month’s decline of 24,000. The unemployment rate and labor force participation rate for September are both expected to have remained steady at 4.2% and 62.7%, respectively. September’s average hourly earnings are expected to have grown by 0.3% month-over-month and 3.8% year-over-year, cooling from the prior month’s 0.4% and unchanged, respectively.
Across the pond, European stocks are mostly higher in mid-day trading as France’s industrial production increased more than forecasted in August, while the U.K.’s construction PMI rose sharply against expectations for a decline.
Overnight in Asia, stocks were mixed as markets in China remained closed for holiday and investors weighed international events like the U.S. jobs report and tensions in the Middle East.
In FOREX trading, the dollar is slightly lower ahead of this morning’s key jobs report.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.6% higher at $74.85/barrel following this week’s increases as concerns over escalation in the Middle East and the potential for supply interruptions, particularly for oil flowing through the Strait of Hormuz, persist.
In the metals complex, gold is little changed at $2657.40/ounce.