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Stock-index futures signaled a higher start for Wall Street on Friday after the Labor Department estimated the U.S. economy added 128,000 new jobs in October and upwardly revised its estimate of job growth in September and August.
Investors are also awaiting an influential gauge of U.S. manufacturing activity.
What are major indexes doing?
Futures on the Dow Jones Industrial Average YMZ19, +0.43% rose 108 points, or 0.4%, to 27,091, while S&P 500 futures ESZ19, +0.44% rose 12.2 points, or 0.4%, to 3,048. Nasdaq-100 futures NQZ19, +0.47% were up 35 points, or 0.4%, at 8,124.75.
The Dow DJIA, -0.52% on Thursday gave up 140.46 points, or 0.5%, to end at 27,046.23, while the S&P 500 SPX, -0.30% finished with a decline of 9.21 points, or 0.3%, at 3,037.56. The Nasdaq Composite COMP, -0.14% closed at 8,292.36, a loss of 11.62 points, or 0.1%.
October was a positive month for stocks, with the S&P 500 notching a record close on Wednesday. The Dow hung on for a 0.5% monthly gain, while the S&P saw a 2% advance and the Nasdaq rose by 3.7%.
Read: Dow and S&P 500 are set to rise at least another 5% in the next 2 months — if this pattern holds
What’s driving the market?
The U.S. economy created 128,000 new jobs in October, above economist’s estimates of a 75,000 gain, while the unemployment rate ticked higher to 3.6%, in line with expectations. Furthermore, the government revised up the number of jobs created in August and September by a total of 95,000.
Wage growth rose by 0.2% in October and 3% from a year ago at a slightly lower pace than earlier in the year, but still faster than overall consumer prices.
The latest survey-based take on the U.S. manufacturing sector will also be in focus. The Institute for Supply Management’s October manufacturing index due at 10 a.m. Eastern is expected to bounce back to 49% from 47.8% in September. A reading below 50% indicates a contraction in activity.
The S&P 500 index ended at a record on Wednesday after the Federal Reserve delivered a widely expected interest rate cut but also signaled it would pause before making any further moves.
“With Fed Chair Jerome Powell estimating that risks to the U.S. economy have subsided, investors will be holding policy makers to their data-dependent stance with greater fervor,” said Han Tan, market analyst at FXTM, in a note. “A sudden deterioration in economic conditions could yet prompt the FOMC to resume its policy easing, even though Powell insisted this week that U.S. monetary policy is in a ‘good place,’ having already made three consecutive 25-basis-point cuts to U.S. interest rates this year.”
A firmer tone for global equities was also tied to a private gauge of manufacturing activity in China, which showed an expansion for a third straight month in October.
The Caixin China manufacturing purchasing managers index rose to a 32-month high of 51.7 last month from 51.4 in September. That’s in contrast to China’s official manufacturing PMI released on Thursday, which fell to an eight-month low of 49.3 in October.
What companies are in focus?
Bringing the busiest week for corporate earnings to a close, several heavyweights issued earnings results Friday morning including Dow component Exxon Mobil Corp. XOM, -0.22%, whose stock rose 1.2% before the start of trade after the oil company reported profits and sales that fell less than expected.
Fellow energy firm Chevron Corp. CVX, -0.19% was set to report before the bell.
Shares of AbbVie Inc. ABBV, -0.14% rose 0.6% in premarket action, after the drugmaker reported better-than-expected earnings and revenue, raised its full-year outlook and boosted its dividend by 10%.
See: Chip-equipment companies suggest a recovery is on the way
Shares of Colgate-Palmolive Co. CL, +0.03% edged lower in premarket trade after the consumer-products giant reported earnings growth that slightly beat expectations, while revenue fell short in the third quarter.
American International Group Inc. AIG, +0.67% reported a profit in the third quarter from a loss in the year-ago third quarter, but missed earnings-per-share forecasts. Shares fell 4.7% before the start of trade.
Newell Brands Inc. NWL, -1.30% saw shares up 2.4% in premarket action after it reported third-quarter profit and sales that topped expectations, while also raising the full-year outlook for both.
Shares of Pinterest Inc. PINS, -3.01% fell more than 20% in premarket action, set to build on a hit it took after millions of shares became available for trade. Even after adjusting for share-based compensation related to its initial public offering, Pinterest still missed analyst earning estimates late Thursday.
Car-rental company Avis Budget Group Inc. CAR, -1.49% shares fell 12% in premarket after posting a drop in adjusted third-quarter profit that came in well below market expectations.
How are other markets trading?
The yield of the 10-year U.S. Treasury note TMUBMUSD10Y, +0.94% rose to 1.71% after the U.S. jobs data after falling 10.7 basis points Thursday, it’s largest daily decline in more than 3 months.
In commodities markets, the price of West Texas Intermediate crude oil CLZ19, +1.35% rose 22 cents, or 0.4% to $54.40 a barrel, while the price of an ounce of gold GCZ19, -0.31% fell $2.10 to about $1,513 an ounce. The U.S. dollar edged 0.1% lower, per the ICE U.S. dollar index DXY, +0.08% .
In Asia overnight, stocks closed mostly higher; the China CSI 300 000300, +1.69% added 1.7%, Hong Kong’s Hang Seng index HSI, +0.72% advanced 0.7%, while Japan’s Nikkei NIK, -0.33% ell 0.3%. In Europe, stocks were trading mostly higher, as evidenced by the Stoxx Europe 600’s SXXP, +0.64% 0.3% gain.
