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Watch Out for the US Employment Report: 5 Key Stock Market Indicators This Friday

Published 06/05/2022, 05:16 pm
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By Laura Sanchez

Investing.com - A busy week in financial markets, with Wall Street reacting lower on investors' fears that the US Federal Reserve (Fed) will adopt a more hawkish policy.

Today, the focus is on the US employment data, one of the Fed's thermometers for gauging the health of the US economy.

Oil prices are on the rise.

The corporate earnings season continues.

Cryptocurrencies are moving lower this morning.

Here are the five factors investors should consider when making their decisions today:

1. US employment report

At 12:30 GMT, the US employment data for April will be released. It is expected that 391,000 new nonfarm payrolls will be created (less than the previous month) and that the unemployment rate will fall to 3.5%, one-tenth of a percentage point lower than in March.

2. Oil rises; corporate earnings

The West presses ahead with its commitment to implement new sanctions on Russia, in particular those related to oil.

This morning, WTI and Brent crude oil prices are higher.

On the other hand, the corporate earnings season continues. Today, Alibaba (NYSE:BABA) and Cigna (NYSE:CI), among others, report their results.

3. Cryptocurrencies fall sharply

The cryptocurrency sector is down sharply today. Bitcoin is trading at around 36,000 dollars and Ethereum at around 2,700.

4. Asia and the American stock market

The main Asian indices are mixed today. Nikkei is up 0.6%, Hong Kong's Hang Seng lost 3.7%, and the Shanghai Composite dropped 2.1%.

On Wall Street, the market ended yesterday in the red. The S&P 500 (-3.5%), Nasdaq (-4.9%), and Dow Jones (-3.1%) closed lower.

5. Macroeconomic data

Key macroeconomic releases include industrial production in Germany and Spain, French nonfarm payrolls, UK construction PMI and Italian retail sales.

In the US, the Baker Hughes oil rig count will be released and several FOMC members will speak.

Follow the day's events on our economic calendar: https://au.investing.com/economic-calendar/

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