Markets await US jobs data, Amazon up 9%

Markets await US jobs data, Amazon up 9%
Global equities were higher in early trading Friday as key labor market report is anticipated.
AUG 04, 2023
By  Bloomberg

Stocks gained and Treasuries fluctuated before US employment data that will be scrutinized for clues on the path for Federal Reserve interest rates.

Contracts for the S&P 500 and Nasdaq 100 indexes both rose, setting US stocks on course to trim their biggest weekly decline since March. Europe’s Stoxx 600 index posted a modest advance as travel and leisure shares outperformed. 

Amazon.com Inc. jumped 9% in US premarket trading following robust results. Apple Inc.’s market value was set to dip below the historic $3 trillion level after the iPhone maker posted a third straight quarter of declining sales. 

Friday’s non-farm payrolls figures are forecast to show the US added 200,000 jobs in July. While that would be the weakest print since the end of 2020, it’s still strong historically and a number exceeding that may fuel bets on more Fed hikes. A report Thursday underscored resilient US demand for workers and the mood in markets remains cautious.

“With NFP still to come, I shouldn’t think investors are too willing to jump in with both feet just yet,” said James Athey, investment director at Abrdn.

Longer-dated Treasury yields were steady, still on pace for their worst week of the year, with the benchmark 10-year note little changed at around 4.18%.

Investors are taking stock at the end of a torrid week in the bond market. The jolt from Fitch Ratings stripping the US of its triple-A credit ranking was compounded by news Wednesday that the government will boost quarterly debt sales to $103 billion, more than expected. Yields soared to the highest since November as traders fretted over the increased supply, wiping out the Treasury market’s gains for 2023.

Meantime, rate options traders are paying up for protection against further increases in long-maturity Treasury yields. A metric that compares demand for bearish put options to demand for bullish call options shows the widest divergence since September for options on CME Group Inc.’s US Treasury Bond Futures contract, which currently tracks a bond that matures in 2039. The gaps are less extreme for options on shorter-maturity Treasury futures.

The recent tumult in markets is making investors wary. Bank of America Corp.’s clients are moving out of equities as the risk of an economic contraction remains high, strategist Michael Hartnett said. “Private clients are shifting back to ‘risk-off’ mode,” he wrote in a note, adding that a hard landing was still a risk for the second half amid higher bond yields and tighter financial conditions. 

In the latest batch of European earnings, WPP Plc dropped after the advertising group cut its revenue guidance. Credit Agricole SA rallied as the French lender reported a surge in profit. 

Some of the main moves in markets:

STOCKS
  • The Stoxx Europe 600 rose 0.2% as of 10:09 a.m. London time
  • S&P 500 futures rose 0.4%
  • Nasdaq 100 futures rose 0.6%
  • Futures on the Dow Jones Industrial Average rose 0.2%
  • The MSCI Asia Pacific Index was little changed
  • The MSCI Emerging Markets Index rose 0.1%
CURRENCIES
  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.0939
  • The Japanese yen was little changed at 142.63 per dollar
  • The offshore yuan was little changed at 7.1887 per dollar
  • The British pound was little changed at $1.2697
CRYPTOCURRENCIES
  • Bitcoin fell 0.4% to $29,156.23
  • Ether fell 0.5% to $1,832.85
BONDS
  • The yield on 10-year Treasuries was little changed at 4.18%
  • Germany’s 10-year yield advanced one basis point to 2.62%
  • Britain’s 10-year yield was little changed at 4.48%
COMMODITIES
  • Brent crude rose 0.4% to $85.50 a barrel
  • Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.