US Stock Futures Trim Gains After Jobs Report

June 2, 2017 3:56AM CDT

U.S. stock futures trimmed modest gains Friday, after official monthly jobs data showed the economy added 138,000 jobs last month, coming in below Wall Street economists' forecasts. Oil prices slide to three-week lows on worries about U.S. output after Trump withdraws from Paris Agreement. The details of the jobs report were also weaker than expected. The number of job gains for April was 138,000k and March's numbers were revised lower. The unemployment rate slipped to 4.3% but the decline was largely due to shrinking labor force. Average wages rose 0.2% to $26.22an hour, in line with expectations. Dow Jones Industrial Average futures were up 20 points, or less than 0.1%, to 21,153, while S&P 500 futures pared gains to trade flat at 2,428. Nasdaq-100 futures advanced 11.50 points, or 0.2%, to 5,833. Opening with gains, however small, would send the main indexes further into record territory. Still, the weekly move for the benchmarks would be modest. Both the NASDAQ and the S&P 500 were set to rise 0.6% with one session left to go, and the DJIA was poised to gain 0.3%. On Thursday, The S&P 500 index closed up 0.8% at 2,430.06, the Dow industrial surged 0.7% to end at 21,144.18, and the Nasdaq Composite Index climbed 48.31 points to finish at 6,245.83. The disappointing reading on the non-farm payrolls is unlikely to stop the Federal Reserve's from raising interest rates, however. The Fed is widely expected to raise interest rates at its two-day policy meeting ending June 14, with the CME Fed Watch tool pointing to a 91.2% chance of such an increase. Other markets: Oil prices fell to three-week on Friday, partly driven by concerns that President Donald Trump's decision to withdraw the U.S. from the Paris Climate Accord will lead to an increase in U.S. oil output. Wall Street's optimism spread across the globe Friday. The Nikkei 225 index closed above the key 20,000 level, adding 1.6% as the Japanese yen eased against the dollar. European stocks were headed for a two-week high  and the FTSE 100 was on track for a record Gold prices continued to fall in the wake of Thursday's labor market data, which provided support for the dollar, but soured investor appetite for the precious metal.

Emini S&P 500 Daily Chart

Emini Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.