U.S. Index Futures Trade Listlessly Ahead of Monthly Non-Farm Payrolls Data

ADP’s private payrolls survey showed that job gains slowed more than expected. In the eventuality of the number coming in line or softer than expected, the market’s reaction will likely be positive if traders focus on its implications for rates.

U.S. index futures showed a muted performance on Friday evening, as traders awaited the crucial monthly non-farm payrolls data.

The ADP's private payrolls survey indicated a sharper-than-expected slowdown in job gains.

If the number comes in as expected or weaker, it could have a positive impact on the market, especially if traders focus on its implications for interest rates.

However, if traders perceive the number to be further evidence of economic weakness, a sell-off could occur.

In a public appearance on Friday, a Federal Reserve official's comments were open to interpretation.

The central bank has made good progress in bringing inflation to the 2% target set by the Federal Reserve, but it is still "a way" from achieving this goal, according to prepared remarks by New York Federal Reserve President John Williams at an event at the Reserve Bank of India, as reported by Reuters.

He also highlighted the uncertainty surrounding the near-term policy direction.

The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.04% to $551.68 and the Invesco QQQ ETF (NASDAQ:QQQ) advanced 0.20% to $492.01 in premarket trading.

According to Benzinga Pro data, the S&P 500 Futures (ES) were up 0.02% to 5,505, while the Dow Jones Industrial Average Futures (DI) and Nasdaq 100 Futures (NQ) were largely unchanged.

Recap Of Last Session's Wall Street Action:

Major Wall Street stock indexes closed mostly higher on Wednesday in a shortened trading session, as traders processed a batch of data points that highlighted the soft patch the economy was going through.

Important Highlights:

Weak data increased the odds of rate cuts, pushing bond yields sharply lower.

The Nasdaq Composite and S&P 500 hit new intraday and closing highs, while the 30-stock Dow Industrials saw some volatility before ending marginally lower.

Analysis From Analysts:

Amid the market's strong showing, one market strategist has advised against passive investing and suggested active stock picking instead.

According to Morgan Stanley Chief Investment Officer Lisa Shalett, further market gains are not out of the question, especially with the upcoming U.S. presidential election. However, she noted that bullish investors may be overlooking key risks, such as high equity valuations and a potential slowdown in big-tech earnings.

"Traditional ‘safe-haven’ assets and defensive sectors might not be as reliable in today's unpredictable markets," Shalett said.

She recommended that investors focus on companies that can achieve expected earnings and potential for growth at a reasonable price, while actively picking stocks.

Upcoming Economic Data:

Non-Farm Payrolls (Sep): Expected 270K, Previous 315K

Unemployment Rate (Sep): Expected 3.6%, Previous 3.5%

Participation Rate (Sep): Expected 62.3%, Previous 62.3%

Initial Jobless Claims (Oct 14): Previous 214K

Continuing Claims (Oct 7): Previous 1.346K

See also: Best Futures Trading Software

Stocks In Focus:

Commodities, Bonds And Global Equity Markets:

Crude oil futures maintained gains and approached the $84-a-barrel mark, while gold futures also edged higher. The 10-year Treasury note yield saw minimal change, hovering around 4.337%.

Bitcoin prices saw a sharp decline from Wednesday's levels, with crypto investors likely panicking ahead of Mt. Gox's $10 billion in bitcoin and Bitcoin Cash repayment starting this week, CoinGape reported.

In Asia, markets ended on a mixed note, with Hong Kong and Singapore markets pulling back sharply and the Japanese market ending little changed with a negative bias. On the other hand, the South Korean, Indonesian, Taiwanese, and New Zealand bucked the downtrend. The lackluster mood reflected a lack of lead from Wall Street overnight owing to the Independence holiday and apprehensions ahead of the U.S. jobs data.

European stocks also advanced in early trading, with the U.K.’s FTSE 100 Index (伦敦证券交易所:FTSE) traded with a modest gain after it emerged that incumbent and Conservative Party leader Rishi Sunak lost the election, ceding power to Labor Party’s Keir Starmer.

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