Futures rise ahead of August payrolls report

3 weeks ago 52

Traders work on the floor of the NYSE in New York

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights

  • August non-farm payrolls report due 8:30 a.m. ET
  • Broadcom slips on downbeat revenue outlook
  • Dell gains on raising full-year forecasts
  • Futures up: Dow 0.35%, S&P 0.33%, Nasdaq 0.14%

Sept 1 (Reuters) - U.S. stock index futures were higher on Friday ahead of a keenly awaited reading that could show job growth likely slowed in August, bolstering expectations of a pause in the Federal Reserve's interest rate hikes.

The Labor Department's closely watched report, due at 8:30 a.m. ET is expected to show nonfarm payrolls likely increased by 170,000 jobs last month, following 187,000 additions in July.

The unemployment rate, however, is forecast to stay unchanged at 3.5%.

"There have been indicators that the U.S. jobs market is finally starting to lose some of its tightness, and if the NFP print confirms this trend, it will be one less thing for the FOMC to worry," said Tim Waterer, chief market analyst at KCM Trade.

The payrolls report will follow recent data showing a fall in job openings and softer-than-expected private employment growth.

An inflation reading has also supported hopes of the Fed hitting a pause on its market-punishing tightening campaign, pushing the tech-heavy Nasdaq (.IXIC) up to a four-week high.

Other data points are also on the radar for the day, with the S&P Global Manufacturing Final PMI due at 9:45 a.m. ET and the ISM Manufacturing PMI due at 10 a.m. ET. Both readings are for August.

Money markets see an 89% chance of a rate-hike pause in the September policy meeting and a 56% chance of a pause in the November meeting, according to the CME FedWatch Tool.

Broadcom (AVGO.O) fell 4.2% premarket as the chipmaker projected current-quarter revenue below expectations on softening enterprise demand.

At 7:09 a.m. ET, Dow e-minis were up 121 points, or 0.35%, S&P 500 e-minis were up 14.75 points, or 0.33%, and Nasdaq 100 e-minis were up 22.25 points, or 0.14%.

Dell Technologies (DELL.N) jumped 10.1% after the personal computer maker raised its annual forecasts for revenue and profit as it benefits from the artificial intelligence boom.

Lululemon Athletica (LULU.O) gained 2.1% after the yogawear maker said on Thursday its third quarter was "off to a solid start" and lifted its annual profit and revenue forecasts for a second time.

Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

Shristi is a correspondent, part of the markets team reporting on the stock markets across U.S., UK, Canada, Europe and Emerging markets.

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