Monday June 4th

4-06-2018

US stocks set to add to gains after Friday’s strong jobs report

U.S. stock index futures pointed to a higher open Monday, after a jobs report that topped expectations sent equities rallying in the previous session. At around 7 a.m. ET, Dow Jones industrial average futures rose 135 points, indicating a higher implied open of 128.79 points. Nasdaq 100 and S&P 500 futures also pointed to a higher start to the session for their respective markets. The move higher on Monday comes after the Dow rallied more than 200 points on Friday following the release of a stronger-than-expected jobs report. The U.S. economy added 223,000 jobs in May — much higher than the 188,000 figure expected by Reuters analysts. Traders are now looking at the so-called JOLTS data (job openings and labor turnover survey), due Tuesday, to confirm the strength of the labor market. Dell Technologies is due to release its latest figures before the opening bell. Palo Alto Networs and Coupa Software are set to release their earnings after the close. On the data front, there will be April factory orders numbers due at 10 a.m. ET. Despite the positive mood, trade concerns continued to linger after U.S.-China trade talks yielded no major breakthroughs. China threatened that previous trade agreements negotiated by the countries "will not take effect" if the U.S. administration goes ahead with a planned tariff increase. Asian stocks closed higher on Monday, tracking gains seen on Wall Street after Friday's expectation-topping U.S. jobs report and shrugging off trade-related concerns. The Nikkei 225 made convincing gains, with the benchmark advancing 1.37 percent, or 304.59 points, to close at 22,475.94 as most sectors rose. Hong Kong's Hang Seng Index, meanwhile, jumped 1.51 percent by 3:07 p.m. Gains elsewhere in the region were moderate, with the Kospi edging higher by 0.36 percent to 2,447.76. The Shanghai composite edged up by 0.52 percent to close at 3,091.19 and the smaller Shenzhen composite tacked on 0.09 percent to end at 1,747.96. Oil prices fell on Monday as U.S. production hit a record high and OPEC members considered boosting supply. Benchmark Brent crude oil fell as much as $1.26 a barrel, or 1.6 percent, to a session low of $75.53. The contract recovered to $75.89, down 90 cents, by 8:46 a.m. ET (1246 GMT). U.S. light crude was down 40 cents at 65.41 a barrel. Last week, the U.S. contract lost around 3 percent, adding to a near 5-percent decline from a week before. Gold prices traded within a narrow range on Monday as lingering concerns about trade wars between the United States and the rest of the world offset expectations of a U.S. interest rate hike this month. Spot gold was nearly unchanged at $1,293.23 per ounce, as of 0751 GMT, after hitting its lowest since May 23 at $1,289.12 in the previous session. U.S. gold futures for August delivery slipped 0.2 percent to $1,297.20 per ounce.