US stock futures climbed on Friday morning as oil prices fell and investors awaited important jobs data that’s expected to show a continuation of the “low hire, low fire” economy.
Futures on the Dow Jones Industrial Average (YM=F) and S&P 500 (ES=F) rose 0.5%, while contracts on the Nasdaq-100 (NQ=F) climbed nearly 0.6%.
The Labor Department’s September jobs report is the key piece of data to watch on Friday after August’s report blew away expectations. Hiring is expected to have returned to a more normal pace of growth last month, with economists forecasting that the economy added 85,000 jobs in September.
It would likely take a big surprise in the jobs data to sway bets that the Federal Reserve will hike interest rates this year, given the run-up in Treasury yields over the past month. While traders pared back their bets for an October rate hike, most still see at least one 25 basis point hike in December.
Fed officials, in recent days, have argued that the central bank has time to assess inflation data before moving, though they agree that inflation remains too high.
The ongoing war in the Middle East, now entering its eighth month, has driven much of the inflationary pressures. President Trump has said he’s considering resuming bombing Iran after the midterm elections but has also said he’s looking for a resolution of the war at that time. On Thursday, the US reportedly sent an additional aircraft carrier and 10,000 sailors and Marines to the Persian Gulf, Bloomberg reported.
Brent crude futures (BZ=F), the global benchmark, dropped to $99 per barrel.
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Nike earnings weigh on sportswear brand stocks for Lululemon, On, and Hoka
Nike’s (NKE) rough quarter — as detailed in Ines’s post below — is weighing on shares of other footwear brands.
Shares of Nike rivals Lululemon (LULU), On (ONON), and Hoka maker Deckers Outdoor (DECK) all dropped fractionally in premarket trading on Friday while the major indexes were in the green.
As Yahoo Finance’s Brian Sozzi reports, Nike CEO Elliott Hill’s comments on the earnings call yesterday afternoon indicated that the weak sportswear market will continue in the medium term, which could pressure the whole sector to discount products.
Read more.
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Nike stock sinks as revenue misses estimates, expects to cut jobs
Nike (NKE) stock fell as much as 6% in after-hours trading on Thursday after posting its fiscal first quarter results and announcing operational changes, which will include layoffs.
Nike posted fiscal first quarter revenue of $11.21 billion, versus consensus estimates of $11.33 billion. That represented a 4% decline from the year-earlier period.
Earnings per share came in at $0.48, down from $0.49 a year ago.
The company said revenues are expected to decline in the high single digits in fiscal 2027. Nike’s gross margin, however, expanded 60 basis points to 42.8%.
The company also announced operational changes in order to reduce costs and operate more efficiently.
“This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty. I don’t take that lightly,” wrote CEO Elliott Hill in a letter to employees.
Read more.
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Good morning. Here’s what’s happening today.
Economic data: Change in nonfarm payrolls, September (+100,000 expected, +162,000 previously); Change in private payrolls, September (+90,000 expected, +127,000 previously); Change in manufacturing payrolls, September (+10,000 expected, +16,000 previously); Average hourly earnings, month-on-month, September (+0.3% expected, +0.3% previously); Average hourly earnings, year-on-year, September (+3.2% expected, +3.1% previously); Unemployment rate, September (4.1% expected, 4.1% previously); Labor force participation rate, September (61.6% previously); Factory orders, August (-0.1% expected, +0.9% previously)
Earnings calendar: Trilogy Metals (TMQ)
Catch up on some top stories from overnight:
Treasuries rebound raises stakes for job data as rate hikes loom
Oil extends gain as Middle East conflict threatens to escalate
Gold steadies as easing US bond yields reduce rate-hike bets
Meta asked to pay up to $40B in penalties after data privacy trial
Anthropic reportedly looking to IPO as early as mid-November
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Gold steadies as easing US bond yields reduce rate-hike bets
Bloomberg reports:
Gold held a modest gain as US bond yields softened and Federal Reserve officials signaled they needed more time to weigh their next move on interest rates, even as a possible escalation in the Middle East kept energy costs elevated.
Bullion traded around $4,180 an ounce, holding a 0.5% rise from the previous session, but was on track to end the week around 2% lower. US Treasury yields eased across the curve on Thursday — with the 10-year retreating from a 24-year high — as concerns over France’s fiscal outlook fueled demand for safe-haven assets. Higher yields are typically a headwind for bullion, which doesn’t pay interest, and helped drive its 6% decline in September.
Read more.
