Market Watch: Dow futures contract increased by 0.6%, S&P 500 futures by 0.2%, and Nasdaq 100 futures by 0.4%.
Stock futures rise ahead of April jobs report, with Apple shares rising due to a smaller quarterly revenue drop. Sony and Apollo submit bid for Paramount Global.
Nonfarm payrolls
The U.S. labor market report is expected to show a slower but steady job growth in April, with nonfarm payrolls expected to be 238,000, down from 303,000 in March. The unemployment rate is expected to remain at 3.8%, and average hourly earnings growth is projected to remain at 0.3%.
Apple Revenue drops
Apple’s quarterly revenue fell 4% compared to the year-ago period but topped analysts’ expectations, bringing shares in the company higher. The total revenue was $90.75 billion, above expectations of $90.32B. Sales in greater China fell 8% to $16.37B due to rising competition. iPhone sales fell to $45.96B, just missing estimates of $46B. Apple announced a $110B stock buyback program and hiked its dividend.
Sony and Apollo deal
Sony and Apollo Global Management have submitted a non-binding all-cash offer worth $26 billion for Paramount Global. The deal, which is a starting point for negotiations, will see Sony as the majority investor and Apollo as the minority investor. This comes as Skydance Media is in talks over a competing bid.
Economic Calendar
- 8:30 Non-farm payrolls
- 9:45 PMI Composite Final
- 10:00 ISM Service Index
- 1:00 PM Baker-Hughes Rig Count
- 7:45 PM Fed’s Williams and Goolsbee Panel
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MFitch Ratings has downgraded China’s credit rating outlook to “Negative” from “Stable” due to concerns over growing public debt and slowing growth in the world’s second-largest economy. The agency affirmed China’s rating at A+, citing increasing risks to China’s public finance outlook. Concerns over slowing economic growth have grown in recent months, with Fitch expecting gross domestic product growth to fall to 4.5% in 2024.
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U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.
U.S. inflation data for February is expected to provide insights into the future direction of Federal Reserve monetary policy. The overall consumer price index (CPI) is expected to match the previous month’s pace of 3.1% annually, with the core CPI expected to slow to 3.7% from 3.9% in January. However, the month-on-month gauge is expected to shed light on price gains momentum.
Fed officials have made cooling inflation the main objective of interest rate hikes, which have brought borrowing costs to over two-decade highs. They suggest cuts may be coming later this year, but need more evidence that price growth is sustainablely easing back down to their 2% annualized target. Analysts at ING believe inflation is likely too hot for comfort.