Wall Street to start lower ahead of jobs data

The main indices on Wall Street are expected to open slightly lower on Friday ahead of the hotly anticipated US jobs data.

The Dow Jones is expected to shed 70 points to 34,497 at open, with the S&P 500 down 4 points to 4,187 and the Nasdaq down 12 points to 13,516.

Consensus sets 650,000 new jobs in May, with unemployment down to 5.9% from 6.1%.

Last month’s figures missed expectations, with only 266,000 jobs added, so May’s reading will help determine whether the weak April print was a one-off or the start of a new trend, analysts say.

“The ADP private payroll report, initial jobless claims and the employment subcomponent in the ISM services PMI all point to a stellar report,” noted Sophie Griffiths at OANDA.

“A strong labour market, combined with elevated inflation, could prompt the Fed to start tapering support to the economy, a concern that dragged stocks lower in the previous session. With this in mind, a better-than-expected jobs report could drive equities lower, particularly high-growth tech stocks, which are more sensitive to interest rate expectations.”

Four things to watch for on Friday:

• Firms reporting earnings today include real estate investment group Urstadt Biddle Properties Inc (NYSE:UBA), home furnishings firm Hooker Furniture Corp (NASDAQ:HOFT) and Floridian mobile home maker Nobility Homes Inc (OTCMKTS:NOBH)
• Crypto markets are back in focus following more Twitter antics from Elon Musk which has caused Bitcoin prices to wobble
• Also in the spotlight is Dogecoin after the meme-inspired crypto was opened up to retail traders on Coinbase Global Inc’s (NASDAQ:COIN) website and app
• On the macro front, aside from the non-farm payrolls, there will also be factory orders and a speech from Fed chair Jerome Powell to hold market attention

Story by ProactiveInvestors