Breaking News
0

Top 5 Things to Know in the Market on Friday

EconomyAug 03, 2018 05:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 5 key factors for the markets on Friday

Investing.com - Here are the top five things you need to know in financial markets on Friday, August 3:

1. Wages in focus in jobs report

The U.S. Labor Department will release the nonfarm payrolls report for July at 8:30AM ET on Friday, and it will be watched more for what it says about wages than hiring.

The consensus forecast is that the data will show jobs growth of 193,000, after adding 213,000 positions in June, while the unemployment rate is seen inching down to 3.9% from 4.0%.

However, most of the focus will likely be on average hourly earnings figures, which are expected to rise 0.3%, a tad faster than the 0.2% increase a month earlier. On an annualized basis, wages are forecast to increase 2.7%, the same gain reported in June.

A spike could put the Federal Reserve on notice about inflation as it considers more rate hikes. The Fed said this week it would continue to gradually raise rates should the economy continue to show "sustained expansion," supported by a strong labor market and close-to-target inflation.

2. Japan overtakes China as world’s 2nd largest stock market as tariffs weigh

Chinese stocks have been pummeled by worries over tariffs, losing $2.29 trillion in value since a January high and falling into third place among the world’s biggest stock markets.

As of Thursday’s close, Bloomberg data showed that Chinese equities were worth $6.09 trillion, falling below the $6.16 trillion value of Japanese shares. U.S. stocks remained the biggest market at $31 trillion.

The escalation of trade tensions between the U.S. and Beijing has sent Chinese stocks on a nosedive along with the yuan.

The Chinese currency hit a 15-month low against the dollar early Friday, heading for its eighth straight weekly decline, the longest run since the start of the country’s modern foreign-exchange rate regime in 1994.

China's services sector expanded at the weakest pace in four months in July, as there was the least growth in new business since December 2015, a private survey showed on Friday.

Forward-looking sentiment meanwhile was the second-weakest on record, with respondents blaming concerns surrounding company restructuring and the impact of the U.S.-China trade war.

3. U.S. futures cautious ahead of jobs report

U.S. futures pointed to a flat open on Friday as traders switched to a cautious stance ahead of the jobs report. A day earlier, the Nasdaq Composite ended with gains of 1.24%, boosted by buying furor in Apple (NASDAQ:AAPL) that took the tech giant’s market cap beyond the $1 trillion mark.

At 5:55 AM ET (9:55 GMT), the blue-chip Dow futures edged forward 2 points, or 0.01%, S&P 500 futures were unchanged, while the Nasdaq 100 futures inched up 6 points, or 0.08%.

Elsewhere, European shares traded higher on Friday as investors celebrated upbeat earnings.

Earlier, Chinese shares increased their losses, falling below Japanese equities in value and losing their spot as the world’s second largest stock market where they had been since 2014. Japan’s Nikkei closed with meager gains of 0.05%.

4. Earnings season winding down

The bulk of second quarter earnings have already hit the wires and more than 80% of the S&P firms that have already reported have beaten profit estimates.

Just 8 S&P firms release earnings on Friday, but that will take the total so far to 406, or 81%.

Still, investors will likely look to a few names expected to release quarterly reports ahead of trading Friday.

Kraft Heinz (NASDAQ:KHC) is expected to report a quarterly profit of 92 cents per share on sales of about $6.6 billion.

The top line will likely get the most scrutiny as the company has seen softness in sales in recent quarter. Investors will also be looking for signs of cost inflation.

In addition, online coupon company Groupon (NASDAQ:GRPN) will issue results. Analysts expect it to post a profit of 3 cents per share on sales of $632 million. Shares of Groupon are higher in the past three months.

5. Oil prices waver ahead of U.S. shale production data

Oil prices wavered in early morning trade on Friday, passing between gains and losses, as a reported drop in inventories at a key delivery point in the U.S. boosted sentiment, but investors awaited data on U.S. drilling activity amid concerns of escalating production.

Information provider Genscape reportedly said Thursday that U.S. crude inventories at Cushing, Oklahoma, the key delivery point for Nymex crude stateside, had fallen by 1.1 million barrels since Friday, July 27. That added to official data out on Wednesday that said those stockpiles decreased by 1.338 million barrels last week.

Capping gains, concerns remained about escalating output from the Organization of Petroleum Exporting Countries and Russia.

Market participants will watch production developments in the U.S. as Baker Hughes releases its weekly data later on Friday.

The U.S. rig count, an early indicator of future output, rose by 3 to 861 last week, according to oilfield services firm’s data. That was the first rig count rise in three weeks, pointing to signs of U.S. output growth.

Top 5 Things to Know in the Market on Friday
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email