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The
Labor Department's employment report, due at 08:30 a.m. ET, is
likely to show nonfarm payrolls rose by 250,000 jobs last month
after rising by 372,000 in June, and that the unemployment rate
remained unchanged at 3.6% for a fifth straight month.
While the 19th straight month of payrolls expansion would add to
a recent batch of data suggesting the U.S. economy was not in a
recession, the cooling in job growth would ease pressure on the
Fed to deliver another super-sized interest rate hike to tame
runaway inflation.
A bevy of policymakers have this week near uniformly flagged the
central bank remains determined to press ahead with rate hikes
until it sees strong and long-lasting evidence that inflation is
trending lower towards the Fed's 2% goal.
Worries about an aggressive rise in borrowing costs, the war in
Ukraine, Europe's energy crisis and COVID-19 flare-ups in China
have rattled equities this year, leading investors to adjust
their earnings expectations for corporate America.
However, the second-quarter earnings season has showed companies
were far more resilient than estimated. Of the 410 S&P 500
companies that have reported earnings so far, 77.1% reported
above analyst expectations, according to Refinitiv data.
The S&P 500 has bounced back nearly 14.2% from its mid-June lows
after a rough first-half performance, prompting investors to
question whether the rally has further room in the face of an
uncertain economic outlook.
At 6:19 a.m. ET, Dow e-minis were up 31 points, or 0.09%, S&P
500 e-minis were down 1 points, or 0.02%, and Nasdaq 100 e-minis
were down 20.5 points, or 0.15%.
Lyft Inc rose 7.8% in premarket trading as the ride-hailing firm
forecast an adjusted operating profit of $1 billion for 2024
after posting record quarterly earnings.
DoorDash Inc gained 11.6% after it raised its annual target for
a key industry metric, saying it does not expect a slowdown in
demand as consumers continue to order in despite decades-high
inflation.
A recent rally in growth stocks after months of underperformance
has put the S&P 500 and the Nasdaq index on course for their
third straight week of gains.
(Reporting by Devik Jain in Bengaluru; Editing by Aditya Soni)
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