Stock futures trade higher ahead of August jobs report
The U.S. economy may have added 728,000 new nonfarm jobs last month
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U.S. equity futures were trading higher ahead of the release of the most anticipated economic report of the month.
The major futures indexes suggested a gain of 0.2% at the opening bell.
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The government will issue the August employment report Friday morning.
The Labor Department is expected to say the U.S. economy added 728,000 new nonfarm jobs last month. That would be down from July’s stronger-than-expected tally of 943,000.
Some analysts are more pessimistic, expecting job growth of 500,000 or less.
The unemployment rate is anticipated to fall 0.2 percentage points to 5.2%, the lowest since March 2020.
AUGUST HIRING MAY HAVE SLOWED DUE TO DELTA VARIANT
The data presented in the report could influence the Federal Reserve's decision concerning economic stimulus.
The Fed has indicated it might begin winding down bond purchases of $120 billion a month that pump money into the financial system, but likely will keep interest rates low until a recovery is confirmed.
JOBLESS CLAIMS FALL TO PANDEMIC-ERA LOW AS EXTRA PAYMENTS SET TO EXPIRE
A survey earlier this week by payroll processor ADP found companies added fewer jobs than expected, while an industry group said manufacturing employment fell.
The number of Americans applying for unemployment benefits fell last week to 340,000, its lowest level since the pandemic began and a sign the job market is rebounding.
In Europe, London's FTSE added 0.2%, Germany's DAX added 0.1% and France's CAC declined 0.3%.
In Asia, the Nikkei 225 in Tokyo added 2%, the Hang Seng in Hong Kong declined 0.7% and China's Shanghai Composite Index fell 0.4%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
On Wall Street on Thursday, the benchmark S&P 500 rose 0.3% to 4,536.95. The Dow Jones Industrial Average gained 0.4% to 35,443.82. The Nasdaq advanced 0.1% to a record 15,331.18.
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In energy markets, benchmark U.S. crude gained 30 cents to $70.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.40 on Thursday to $69.99. Brent crude, the price basis for international oils, added 51 cents to $73.54 per barrel in London. It rose $1.44 the previous session to $73.03 a barrel.
The Associated Press contributed to this report.