Traders work on the New York Stock Exchange.
New York Stock Exchange
After investors got rid of concerns that the labor market report released on Friday was far weaker than expected, stock futures closed slightly lower on Sunday night after closing near the flat line on Friday.
The Dow Jones Industrial Average futures fell 6 points, or 0.02%. Standard & Poor’s 500 Index and Nasdaq 100 Index futures fell 0.18% and 0.27%, respectively.
In regular trading on Friday, the Dow fell 8.69 points to 34,746.25. The Standard & Poor’s 500 Index fell 0.2% to 4,391.34. The Nasdaq Composite Index fell 0.5% to 14,579.54.
The market responded to a disappointing employment report that first caused the major stock indexes to fall, but investors eased their concerns after digesting the data and realizing that things might not be as bleak as initially suggested. The US Department of Labor reported on Friday that the economy added only 194,000 jobs in September, compared with Dow Jones’s estimate of 500,000.
“The three-month moving average of non-agricultural employment has stabilized at 550,000,” Natixis CIB chief America economist Joe LaVorgna said in a report. “At this rate, jobs will make up for the pandemic-related losses before July next year. The recovery of the job market has made enough progress, and the Fed will start to scale down next month and target it in June next year. Finish left and right.”
Chris Zacarelli, chief investment officer of the League of Independent Advisors, added that if a “very bad” employment report would undermine the Fed’s plan to start canceling the stimulus plan, although the report is “disappointing, there is no doubt that we No. Don’t believe it’s bad enough to stop them. “
In addition, the unemployment rate itself fell to 4.8%, far below economists’ forecasts.
This week, major banks will begin to announce third-quarter earnings. JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are scheduled to start reporting on Wednesday. Delta Air Lines and Walgreens Boots Alliance are also on deck.
According to data from FactSet, analysts estimate that the S&P 500’s profit growth rate in the third quarter was 27.6%, and the price of the index will rise by 15% in the next 12 months. However, as the upward difference between the bottom-up target price and the closing price on October 6 is the smallest, the financial sector is expected to have the smallest price increase.
There are no economic data on Monday.