Friday November 1st

1-11-2019

Dow futures jump 100 points after big jobs report beat

U.S. stock index futures jumped Friday after the U.S. government reported employment growth numbers that easily topped expectations. At around 8:30 a.m. ET, Dow Jones Industrial Average futures were up 110 points, indicating a gain of about 105 points at the open. S&P 500 and Nasdaq 100 futures also indicated solid. The U.S. economy added 128,000 jobs in October, the Labor Department said Friday. Economists polled by Dow Jones expected a gain of 75,000 jobs for the previous month. October jobs growth easily beat estimates despite a decline of 42,000 jobs in the autos sector due to a General Motors strike that has now been settled. Jobs growth data for September and August was also revised substantially higher. September’s number was revised up to 180,000 from 136,000. August jobs growth was revised to 219,000 from 168,000. At 10 a.m. ET, the Institute for Supply Management is expected to release data on U.S. manufacturing activity for October. U.S. manufacturing fell to its lowest level in a decade in September amid lingering worries around U.S.-China trade talks. Trade dented stocks on Thursday — the last day of October — after Bloomberg News reported Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The Dow fell more than 100 points Thursday while the S&P 500 dipped from a record. The corporate earnings season continued on Friday, with Exxon Mobil reporting earnings that topped analyst expectations. Exxon Mobil shares climbed 1.2% in the premarket. U.S. Steel shares rose around 5% after the company posted Thursday afternoon a smaller-than-expected quarterly loss. Qorvo also reported better-than-expected results and issued strong guidance for the current quarter, sending its stock up more than 10%. Around 70% of S&P 500 companies have reported quarterly numbers thus far, according to FactSet. Of those companies 75% have reported better-than-expected earnings. Stocks in Asia mostly advanced on the first trading day of November amid renewed concerns over the potential for a long-term trade deal between China and the U.S. Mainland Chinese stocks rose by the close The Shanghai composite advanced 0.99% to about 2,958.20 and the Shenzhen component gained 1.73% to 9,802.33. The Shenzhen composite also added 1.288% to approximately 1,637.00. In Hong Kong the Hang Seng index rose 0.57%, as of its final hour of trading. Meanwhile, South Korea’s Kospi advanced 0.8% to close at 2,100.20. Japan’s Nikkei 225 lagged as it slipped 0.33% to close at 22,850.77, while the Topix index ended the trading day largely flat at 1,666.50. Oil prices edged up on Friday after a difficult week, but were still headed for losses of about 4%, hit by a combination of rising global supply and uncertain future demand. Brent crude was up 9 cents cents, or 0.15%, at $59.71 a barrel, on track for a drop of about 4% for the week. WTI crude was up 22 cents to $54.40 a barrel with the U.S. contract was set for a weekly loss of more than 4%. Gold prices slipped on Friday as strong data from China buoyed risk appetite, while investors awaited employment data from the United States to determine the impact of a long-drawn trade war on its economy. Spot gold dipped 0.2% to $1,510.25 per ounce. Prices were set to record a weekly gain of 0.4%. U.S. gold futures fell 0.1% to $1,512.60 per ounce.