Wall Street futures rise ahead of employment data release
Wall Street futures signal gains. European markets are trading positively, while Asian markets closed mixed. Bank of America estimates that the US labor market added about 80,000 jobs in July. Monday shareholders approved doubling the compensation package for the CEOs.
Trading review: reports, trends, indices, stocks, bonds, currency, commodities, and analyst recommendations. 14:35. Trading on Wall Street is expected to open with gains. Nasdaq futures are up about 0.5%, S&P 500 by 0.2%, and Dow Jones by 0.1%. Trading in Europe is currently positive: DAX is up 0.9%, CAC 0.4%, FTSE 0.7%, and Stoxx 600 0.6%.
The US market awaits the week's most important figure — the monthly employment report. Economists estimate continued healthy job growth supported by private consumption. Bank of America expects the report to show a stable labor market with about 80,000 new jobs and a slight rise in unemployment to 4.3% due to increased labor force participation. The bank notes this does not indicate economic weakness. A strong labor market, alongside stubborn inflation, strengthens the forecast for three additional interest rate hikes by the Federal Reserve this year, potentially facilitating a September rate hike.
Yesterday, initial jobless claims totaled 199,000 for the week ending August 1. This is the third consecutive week below the 200,000 threshold, a streak not seen since 1969. The four-week moving average fell to its lowest level since September 2022.
Oil
Developments in the Strait of Hormuz influenced prices: Middle East escalation and uncertainty regarding the strait's opening pushed Brent crude above $82 per barrel (a 4% jump). Iran published a draft plan including restrictive conditions for vessel movement, including a ban on American and Israeli ships. Violators face fines equal to 20% of cargo value. Brent is currently trading around $82, WTI around $77 per barrel.
Corporate News
Airbnb stock (151.64, -0.56%) is jumping 7% pre-market after reporting revenue growth of 17% to $3.1 billion and net profit of $816 million. Cloudflare (284.44, -2.91%) is up 16% on a strong forecast. Nasdaq closed lower yesterday due to weakness in chip stocks, including SanDisk (1258.58, -6.81%) and Western Digital (451.52, -13.03%). Dow Jones fell 0.8%, weighed down by Salesforce (186.82, -3.13%), Boeing (232.175, -3.33%), and UnitedHealth (169.8, -1.09%). The energy sector led gains, with Exxon Mobil (154.83, +2.12%) and Chevron (189.24, +1.52%) standing out. Alphabet (356.62, -0.97%) is considering raising up to $25 billion in the bond market.
Israeli Companies
Monday (87.57, -4.24%) shareholders approved doubling the compensation package for co-CEOs Roy Mann and Eran Zinman, with each package reaching $14.6 million by 2029. The stock is up 4% pre-market. Playtika (3.29, -15.42%) fell sharply despite returning to profit. Amdocs (59.12, +6.93%) jumped after reporting quarterly profit of $1.84 per share.
Asia
Asian stock exchanges closed mixed. Nikkei fell 0.1%, KOSPI 0.6%, Shanghai rose 1%, and Hang Seng 0.4%. China's July exports grew 23% in dollar terms, beating forecasts, while imports rose 27.5%.
