Here are the most important news, trends and analysis that investors need to start their trading day:
1. Futures rise ahead of jobs report, after Dow record close
Traders on the floor of the New York Stock Exchange.
U.S. stock futures rose on Friday ahead of the release ahead of the bell of the monthly government jobs report, which is expected to show a 1 million nonfarm job gain in April. Signs of a labor market recovery in jobless claims on Thursday during the time of the Covid pandemic pushed the Dow Jones Industrial Average up nearly 1% to another record high. A similar gain in the S&P 500 took this index to within 10 points of last month’s record close. The Nasdaq rose 0.4%, breaking a four-game losing streak, but still more than 3.5% from April’s record close. Prior to Friday’s opening on Wall Street, the highly technological Nasdaq was down more than 2.3% for the week. The Dow and S&P 500 rose nearly 2% and nearly 0.5%, respectively, for the week.
Pfizer shares were held steady while BioNTech jumped 5% on Friday before it went to market, after both companies said they had started the process to apply for full approval of their Covid vaccine in the United States. Full approval would allow companies to market the two-shot regimen directly. to consumers. The FDA granted emergency clearance status at the end of December.
2. Economists expect 1 million non-farm jobs to gain in April
Waiter Adrian Almanza brings entrees to a table at Satay Thai Bistro and Bar, in Las Vegas, Nevada on March 28, 2021.
Bridget Bennett | Reuters
The expected growth of 1 million jobs for last month comes after 916,000 non-farm payroll additions in March. The Department of Labor is expected to release these issues in April at 8:30 a.m. ET. In an economy that is recovering thanks to the increase in Covid vaccinations, more and more companies are reopening and looking to hire. The country’s unemployment rate is expected to drop to 5.8% in April.
April’s jobs report is widely watched by investors due to the Federal Reserve’s promise to keep its extremely easy monetary policy in place, including near zero interest rates, until the labor market heals and inflation begins to accelerate. However, many traders believe these things are already happening and the Fed may need to rethink its ultra-accommodative stance and make adjustments sooner than it expected.
3. The Fed warns of the possibility of “significant drops” in asset prices
The Federal Reserve building is seen on March 19, 2021 in Washington, DC.
Daniel Slim | AFP | Getty Images
Rising asset prices in the stock market and elsewhere pose growing threats to the financial system, the Fed has warned. In its semi-annual financial stability report, the central bank said on Thursday that danger looms if market sentiment changes. “High asset prices partly reflect the continued low level of Treasury yields. However, the valuations of some assets are high by historical standards, even using measures that take into account Treasury yields, ”the report warns. “In this environment, asset prices may be vulnerable to large declines if risk appetite decreases. “
4. India reports more than 400,000 new cases daily for the third time in a week
Health workers and relatives transport woman from ambulance for treatment at COVID-19 healthcare facility, amid the spread of coronavirus disease (COVID-19) in Mumbai, India on May 4 2021.
Niharika Kulkarni | Reuters
India’s daily new Covid cases topped 400,000 for the third time this month as the South Asian country struggles to contain a devastating second wave. Ministry of Health data released on Friday showed 414,188 new Covid infections over a 24-hour period, during which at least 3,915 died from the disease. However, reports of overwhelmed crematoria and cemeteries as well as a growing number of newspaper obituaries suggest that official figures underestimate the true death toll. Many localities have tightened Covid mitigation measures even as the Indian government resisted a nationwide lockdown.
5. Peloton sees $ 165 million hit due to recall of treadmills
A screen displays the signage of Peloton Interactive Inc. during the company’s initial public offering (IPO) in front of the Nasdaq MarketSite in New York, the United States on Thursday, September 26, 2019.
Michael Nagle | Bloomberg | Getty Images
Peloton expects its fiscal fourth quarter sales to impact $ 165 million due to a recall of its treadmills. Peloton shares plunged nearly 15% on Wednesday, following the company toppling in issuing a voluntary recall after a child died and dozens injured in crashes involving the Tread + machine . The title rose 1.4% on Thursday.
Shares jumped nearly 7% in pre-market on Friday, the morning after the fitness equipment company announced a 141% increase in third-quarter revenue, to $ 1.26 billion better. provided that. Demand for its cycles, which represent the majority of its business, remained strong. The adjusted loss per Peloton share of 3 cents in the third quarter of the year was well below estimates.
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