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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 22, 2024.
Brendan McDermid | Reuters
Stock futures were near the flatline Friday morning as investors awaited key payrolls data.
Futures tied to the Dow Jones Industrial Average dipped 42 points, or 0.1%. S&P 500 futures shed 0.08%, while Nasdaq 100 futures were flat.
Several companies posted strong quarterly results after the closing bell and saw their shares take off. Ulta Beauty jumped 12% after posting higher-than-expected earnings and revenue for the fiscal third quarter. GitLab and Docusign gained 7% and 14%, respectively, on quarterly beats.
Investors are now turning to Friday's jobs report, anticipating it will provide a clearer picture into the health of the domestic labor market and shape the Federal Reserve's rate decision at its Dec. 17-18 policy meeting. Economists polled by Dow Jones expect that nonfarm payrolls increased by 214,000 in November, which would mark a huge hike from October's gain of just 12,000.
"With market expectations for solid rebound in payrolls, an even stronger print above expectations could force the Fed to think twice about the pace of rate cutting next year," said Charlie Ripley, senior investment strategist at Allianz Investment Management.
Given the continued strength of the U.S. economy, Fed Chair Jerome Powell has previously said that policymakers don't need to be "in a hurry to lower rates."
Stocks closed Thursday's session lower, retreating from records the major indexes hit in the previous session. Week to date, the S&P 500 is up 0.7%, while the tech-heavy Nasdaq Composite has gained 2.5%. The 30-stock Dow is down 0.3% in the period.
Investors can't decide if a weak or strong labor data is better for the rate outlook
Investors have a mixed outlook on Friday's jobs report, which is one of the remaining major events the market has left to digest before the Federal Reserve's Dec. 17-18 meeting.
John Flood, head of Americas equities sales trading for Goldman Sachs Global Banking & Markets, told CNBC earlier this week that he expects markets will rally on a softer report — saying a headline number in the 150,000 to 200,000 range is the "sweet spot" for stocks. But Goldman's official forecast reflects a 235,000 job increase in nonfarm payrolls, while Dow Jones has a consensus estimate of 214,000 jobs being added last month.
Read here in CNBC Pro for more on what traders are looking for.
— Sarah Min, Pia Singh
Ulta, Lululemon, software makers among stocks making biggest moves after Thursday's close
Check out the companies making headlines in after-hours trading.
- Ulta Beauty – The beauty retailer jumped 12% after posting beats on the top and bottom lines in the fiscal third quarter. Ulta reported earnings of $5.14 per share on revenue of $2.53 billion. That topped analysts' forecast for earnings of $4.54 per share and revenue of $2.50 billion, per LSEG. The company also lifted its full-year guidance.
- GitLab — The developer tools software maker jumped 6% after posting a significant earnings beat for the third quarter. GitLab reported adjusted earnings of 23 cents per share on revenue of $196 million, exceeding the LSEG consensus estimate of 16 cents per share on revenue of $188 million. The company also announced a new CEO, effective Thursday.
- Lululemon Athletica — The athletic apparel maker posted a quarterly beat, sending its stock more than 10% higher. Lululemon reported $2.87 per share in earnings on $2.40 billion in revenue, exceeding analysts' forecast of $2.69 per share in earnings on $2.36 billion in revenue.
For the full list, read here.
— Pia Singh
Futures open little changed on Thursday
Stock futures were little changed shortly after 6 p.m. ET on Thursday as investors turned to Friday's highly-anticipated labor data release.
Futures tied to the Dow Jones Industrial Average dipped 20 points, or nearly 0.1%. S&P 500 futures edged slightly lower, while Nasdaq 100 futures shed about 0.1%.
— Pia Singh
English (US)