Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow futures down 55 pts; caution ahead of payrolls

Published 02/12/2022, 11:08 pm
Updated 02/12/2022, 11:08 pm
© Reuters.

© Reuters.

By Peter Nurse    

Investing.com -- U.S. stocks are seen opening slightly lower Friday, ending a generally positive week in a cautious mood ahead of the release of the key monthly U.S. employment report.

At 07:00 ET (12:00 GMT), the Dow Futures contract was down 55 points, or 0.2%, S&P 500 Futures traded 3 points, or 0.1%, lower and Nasdaq 100 Futures dropped 16 points, or 0.1%.

The major averages have headed higher this week, boosted by Federal Reserve Chair Jerome Powell signaling a smaller half-percentage point interest rate hike at the U.S. central bank’s last meeting this year, later this month.

The U.S. central bank has hiked interest rates by 75 basis points in each of its last four policy-setting meetings in an attempt to curb soaring inflation. 

But the November CPI release pointed to inflation having peaked and Thursday’s core personal consumption expenditures report, the Fed’s favorite gauge of inflation, declined more than expected on a monthly basis.

Attention now turns to the labor market, with the U.S. economy expected to have added 200,000 jobs last month, below the 261,000 seen in October. A loosening in the labor market would be a good sign to the Fed that its tightening actions to date are starting to have an effect.

Also of interest will be comments by Chicago Fed President Charles Evans before the central bank officials go into their quiet period that precedes a policy-setting meeting. 

In the corporate sector, quarterly earnings are due from restaurant chain Cracker Barrel (NASDAQ:CBRL), while tech companies Asana (NYSE:ASAN), Zscaler (NASDAQ:ZS) and Marvell (NASDAQ:MRVL) Technology are all seen trading sharply lower premarket after reporting disappointing numbers post Thursday's close.

Tesla (NASDAQ:TSLA) will also be in focus after the electric vehicle company delivered its first heavy-duty Semi on Thursday to PepsiCo (NASDAQ:PEP) without offering updated forecasts for the truck's pricing or production plans.

Crude oil prices stabilized Friday, but are set to post a weekly advance on hopes China is set to further relax its COVID restrictions, boosting economic activity and thus demand for energy at the biggest crude importer in the world.

Elsewhere, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, meets virtually on Sunday to decide future production levels, while European Union governments are still discussing the level at which to cap the price on Russian seaborne oil.

Baker Hughes is set to deliver its U.S. oil rig count later in session, as usual, along with weekly CFTC crude positioning data. 

By 07:00 ET, U.S. crude futures traded 0.1% higher at $81.28 a barrel, while the Brent contract rose 0.1% to $86.89. 

Both benchmarks were on track for their first weekly gains after three consecutive weeks of decline.

Additionally, gold futures fell 0.2% to $1,812.35/oz, while EUR/USD traded 0.1% higher at 1.0531.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.