Dow Futures Down 20 Pts; June Jobs Report in Spotlight
08 Jul 2022
DOW JONES is trading up 1.12% at 31384.56
U.S. stocks are seen opening marginally lower Friday, with investors cautious ahead of the release of a key monthly jobs report which could guide future Federal Reserve policy.
At 07:00 AM ET (1100 GMT), the Dow Futures contract was down 20 points, or 0.1%, S&P 500 Futures traded 10 points, or 0.3% lower, and Nasdaq 100 Futures declined 65 points, or 0.5%.
The major Wall Street indices closed with significant gains Thursday, rallying on hopes that falls in the prices of major commodities like crude oil and copper pointed to inflationary trends already peaking.
The blue-chip Dow Jones Industrial Average closed almost 350 points, or 1.1%, higher, the tech-heavy Nasdaq Composite rose 2.3%, and the broad-based S&P 500 gained 1.5%, its fourth consecutive positive day, matching the longest winning streak of the year so far.
Yet, despite the recent gains, recession fears remain strong with the Federal Reserve signalling in the minutes of its June policy meeting earlier this week that it was prepared to raise rates another 50-75 basis points at its meeting later this month in a bid to tame inflation.
Ahead of this comes the June jobs report, at 08:30 AM ET (1230 GMT), which is expected to show that the economy added 268,000 positions during the month, a slowing down from the 390,000 jobs created in May.
The unemployment rate is seen staying at 3.6%, while average hourly earnings, a gauge of inflationary pressures, are expected to grow 0.3% month over month, unchanged from May.
On technical fronts DOW JONES RSI stood at 53.82 and currently it is trading above 5 and 20 days MA & below 50 days MA. So, BUY position can be taken with following target and stoploss:
TRADE SIGNAL – : DOW JONES – BUY: 31373.00, TARGET: 31528.14, STOP LOSS: 31196.00