LIVE MARKETS-US stock futures add slightly to gains after latest jobs data
Spdr Select Fund-Energy Select Sector XLE | 0.00 | |
Dow Jones Industrial Average DJI | 0.00 | |
Healthcare Select Sector SPDR XLV | 0.00 | |
CBOE Volatility Index | 0.00 | |
Spdr Select Sector Fund - Technology XLK | 0.00 |
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US STOCK FUTURES ADD SLIGHTLY TO GAINS AFTER LATEST JOBS DATA
U.S. equity index futures are higher after the release of the latest employment data.
E-mini S&P 500 futures EScv1 are now up around 0.55% vs. a gain of around 0.5% just before the numbers came out.
The April headline jobs number came in at 115,000 vs. a 62,000 estimate. The March reading was revised up to 185,000 from 178,000.
The unemployment rate was 4.3% vs. a 4.3% estimate, and a 4.3% prior print. Average hourly earnings on a month-over-month and year-over-year basis were cooler than expected.
According to the CME's FedWatch Tool, the probability that the Fed sits on its hands and leaves its current target rate of 3.50%-3.75% unchanged at its June 16-17 FOMC meeting is now around 95% vs. 99% just before the data was released. The chance that the FOMC cuts rates by 25 basis points is now around 5% vs. 1%.
Interest rate probabilities are now suggesting the implied target rate will be 0.9 basis points (bps) higher through December 2026 vs. 2.8 bps just before the data came out.
The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.36%. It was around 4.38% just before the data came out. The yield ended Thursday at 4.394%.
Most S&P 500 .SPX sector SPDR ETFs are quoted up in premarket trading. Tech XLK.P up more than 1%, is the leading gainer. Energy XLE.P and Healthcare XLV.P are around flat.
The State Street Regional Banking ETF KRE.P is up around 0.3%.
Regarding the jobs data, Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said:
"With two months in a row of job gains during the months where energy price spikes were most acute reveals a latent demand by businesses to grow and hire."
May University of Michigan preliminary sentiment is due at 10 a.m. EDT. Expectations call for 49.5 vs. a 49.8 prior reading.
Here is a premarket snapshot from around 8:53 a.m. EDT.
(Terence Gabriel, Chuck Mikolajczak)
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