Here are the top news, trends, and analysis that investors need to get their trading day started:
1. Futures rose ahead of the job report after the Dow closed its record
Traders on the floor of the New York Stock Exchange.
US stock futures rose on Friday ahead of the pre-bell government’s monthly employment report, which is expected to add 1 million non-agricultural jobs in April. Signs of a recovery in the labor market in Thursday’s Covid pandemic low unemployment claims saw the Dow Jones Industrial Average rise nearly 1% to another record high. A similar rise in the S&P 500 resulted in this index being within 10 points of last month’s record close. The Nasdaq rose 0.4%, breaking a four-session loss but still more than 3.5% off April’s record high. Ahead of the Wall Street opening on Friday, the tech-heavy Nasdaq fell over 2.3% this week. The Dow and S&P 500 rose nearly 2% and nearly 0.5%, respectively, over the week.
Pfizer’s shares were unchanged, while BioNTech gained 5% in the pre-market on Friday after the two companies announced they would file 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 the vaccine emergency approval status in late December.
2. Economists expect non-agricultural jobs to grow by 1 million in April
Server Adrian Almanza brings appetizers to a table at the Satay Thai Bistro and Bar in Las Vegas, Nevada, March 28, 2021.
Bridget Bennett | Reuters
The expected growth of 1 million jobs last month can be attributed to 916,000 non-farm employees in March. The Department of Labor will be releasing these April numbers at 8:30 p.m. ET. In a recovering economy due to increasing Covid vaccinations, more and more companies are reopening and looking for new employees. The country’s unemployment rate fell to 5.8% in April.
April’s employment report is widely watched by investors as the Federal Reserve pledged to maintain its extraordinarily simple monetary policy, including near zero interest rates, until the labor market heals and inflation begins to rise. However, many traders believe these things are already happening and the Fed may need to rethink its highly accommodative stance and make adjustments sooner than it forecast.
3. The Fed warns of possible “significant declines” in asset prices
The Federal Reserve building can be seen in Washington, DC on March 19, 2021.
Daniel Slim | AFP | Getty Images
Rising asset prices in stock markets and elsewhere pose a growing threat to the financial system, the Fed warned. In its semi-annual financial stability report released Thursday, the central bank said the danger lurks if market sentiment changes. “High asset prices reflect in part the persistently low levels of government bond yields. However, valuations of some assets are elevated from historical norms even when measures are applied that take government bond yields into account,” the report said. “In this environment, asset prices can be vulnerable to significant declines should appetite decline.”
4. India reports more than 400,000 cases a day for the third time in a week
Health care workers and health care workers transport a woman from an ambulance for treatment at a COVID-19 care facility amid the spread of coronavirus disease (COVID-19) in Mumbai, India on May 4, 2021.
Niharika Kulkarni | Reuters
Daily new Covid cases in India topped 400,000 for the third time this month as the South Asian country struggles to contain a devastating second wave. Health ministry data released on Friday showed 414,188 new Covid infections over a 24-hour period, in which at least 3,915 died from the disease. However, reports of overcrowded crematoria and cemeteries, as well as a growing number of obituaries in newspapers, suggest that the official numbers underestimate the real death toll. Many places have tightened covid containment measures despite the Indian government resisting a national lockdown.
5. Peloton hits $ 165 million as a result of a recall of its treadmills
A monitor displays the signage of Peloton Interactive Inc. during the company’s IPO across the Nasdaq MarketSite in New York, United States on Thursday, September 26, 2019.
Michael Nagle | Bloomberg | Getty Images
Peloton anticipates fiscal fourth quarter revenue to decrease $ 165 million due to a recall of its treadmills. Peloton’s shares fell nearly 15% on Wednesday after the company announced a voluntary recall after a child died and dozens were injured in accidents involving the Tread + machine. The stock rose 1.4% on Thursday.
Shares were up nearly 7% ahead of trading on the morning after the fitness equipment company reported third-quarter sales up 141% to a better-than-expected $ 1.26 billion. Demand for cycles, which make up most of the business, remained strong. Peloton’s adjusted loss per share of 3 cents for the third quarter of fiscal year was well below estimates.
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