Stock futures are stable ahead of key unemployment report

US stock index futures were little changed during Thursday’s night session, ahead of Friday’s highly anticipated jobs report.

Futures contracts linked to the Dow Jones Industrial Average lost 24 points. The S&P 500 and Nasdaq 100 futures were stable.

Shares ended Thursday’s session in the green, with the S&P 500 rising 0.6% to close at a new high. The Dow Jones gained 271.58 points, or 0.78%. The Nasdaq Composite also rose 0.78% for its fourth consecutive positive session.

All eyes are on Friday’s jobs report, which will show how the job market fared in July. Economists expect the economy to have created 845,000 jobs last month, according to Dow Jones estimates. However, the wide range of goals – from 350,000 at the bottom of the scale to 1.2 million at the top – shows the uncertainty in the market today.

Brad McMillan, chief investment officer at Commonwealth Financial Network, noted that this year’s monthly readings ranged from 233,000 in January to 850,000 in June. He said a circulation of less than 300,000 could be a cause for concern, while a reading of between 300,000 and 400,000 would show a “reasonably healthy” economy.

“A better result would be in line with the second quarter average of around 500,000 to 600,000. This would show that the recovery is continuing and that while medical and social problems prevent further acceleration, the economy still has enough momentum to continue. keep moving forward at a reasonable pace, ”he said.

Friday’s report comes after the weekly number of initial claims reported Thursday rose to 385,000, which was in line with expectations.

Wall Street is watching Friday’s jobs report closely given its potential impact on Federal Reserve policy going forward.

“While uncertainty over monetary policy is likely to trigger further bouts of volatility, we believe the Fed’s move towards tapering should not cause a reversal of the equity rally,” noted strategists at UBS.

“The sagging labor market, entrenched inflation expectations and the risks associated with the COVID-19 delta variant make an interest rate hike unlikely before 2023,” the company added.

A heavy revenue week continues Friday with several notable reports including from Canopy Growth, AMC Networks, Draftkings, Norwegian Cruise Line and Goodyear Tire. Additionally, Berkshire Hathaway is on deck for Saturday morning.

As of Thursday afternoon, 427 components of the S&P 500 have released quarterly results, 88% above earnings estimates, according to data from Refinitiv. On the revenue side, 87% exceeded expectations.

For the week, the Dow Jones is up 0.4%. The S&P and the Nasdaq are up 0.77% and 1.5% respectively.