x
Breaking News
0

U.S. futures slip ahead of payrolls; oil suffers profit-taking

Stock MarketsMay 06, 2016 07:19AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Wall Street futures point to slightly lower open ahead of employment report

Investing.com – U.S. futures essentially maintained a holding pattern on Friday, pointing to a slighter lower open on Wall Street while waiting for the publication of the monthly employment report.

The blue-chip Dow futures lost 33 points, or 0.19%, by 11:16AM GMT, or 7:16AM ET, the S&P 500 futures gave up 5 points, or 0.23%, while the tech-heavy Nasdaq 100 futures fell 10 points, or 0.23%.

Unlike Asian counterparts that dropped to a one-month low or cautious European investors that cashed out on mixed earnings, Wall Street looked reticent to make big bets ahead of the key U.S. data to be released on Friday at 12:30GMT, or 8:30AM ET.

Economists expected to see the creation of 202,000 nonfarm payrolls (NFP), while the unemployment rate was forecast to remain at 5.0%.

But experts warned of a possible miss to the downside after weekly jobless claims posted their largest increase in more than a year on Thursday, while Challenger job cuts increased in April with 2016 planned layoffs reaching a seven-year high and Wednesday’s ADP report showed the lowest employment creation in three years.

The dollar edged lower in anticipation of the event. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 93.60, at 11:17AM GMT, or 7:17AM ET.

Meanwhile, investors were digesting a slew of comments from Federal Reserve (Fed) officials that spoke late on Thursday.

Even though Fed funds futures put the chance of a move in interest rates at only 10% and market data suggested that only one rate hike would occur this year, and that in December, four members of the U.S. central bank suggested that a move was still on the table for the next meeting in June.

San Francisco Fed president John Williams stated that two or three would still be reasonable.

Atlanta Fed chief Dennis Lockhart said he was still undecided on the move in June and that his final decision would be data dependent.

The head of the St. Louis Fed, James Bullard, suggested that global headwinds may have dissipated, clearing the way for policy tightening.

Dallas Fed president Robert Kaplan focused on the fact that it was difficult to know how high rates can rise, implying that he is leaning towards a tightening bias.

On Wednesday, Minneapolis Fed president Neel Kashkari had indicated that the Fed will not raise rates again until "the data allows it," he said, without saying what data he would need to see to support a rate hike.

In company news, Warren Buffett’s Berkshire Hathaway, Oppenheimer, Revlon, and Madison Square Garden were among companies scheduled to report earnings.

In oil markets, investors took profits after a rally of around 20% in the last month. West Texas Intermediate was on track to register heavy weekly losses of more than 4%, despite recent concern of supply shortages due to the forest fires in Canada.

Traders would also gauge U.S. oil production later on Friday with the Baker Hughes’ U.S. rig count.

U.S. crude futures dropped 0.61% to $44.05 by 11:16AM GMT, or 7:16AM ET, while Brent oil traded down 0.69% to $44.70.

U.S. futures slip ahead of payrolls; oil suffers profit-taking
 

Related Articles

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.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
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?
 
 
Replace the attached chart with a new chart ?
Post 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