US pre-open: Stocks seen muted after Friday's strong gains
By Michele Maatouk
Date: Monday 05 Jun 2023
(Sharecast News) - US stock futures pointed to a muted open on Monday as investors paused for breath following strong gains at the end of last week on the back of a solid non-farm payrolls report.
At 1235 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were down 0.1%.
On Friday, the non-farm payrolls report showed that the economy created far more jobs than expected in May, but analysts suggested that a moderation in wage growth could allow the Federal Reserve to skip a rate hike this month.
Non-farm payrolls rose by 339,000 from April, comfortably beating expectations for a 190,00 increase. However, annual wage growth eased to 4.3% from 4.4%.
Oil prices gained after Saudi Arabia announced over the weekend that it will cut oil production next month and do "whatever is necessary" to lift prices Saudi said it would cut 1m barrels per day (bpd) in July, while OPEC+ said targets would decline by a further 1.4m bpd from next year.
In China, a survey out earlier showed that activity in the services sector unexpectedly picked up in May.
The Caixin/S&P Global services purchasing managers' index rose to 57.1. from 56.4 in April, coming in above consensus expectations of 55.2.
A reading above 50.0 indicates expansion, while a reading below signals contraction.
Neil Wilson, chief market analyst at Markets.com, said: "Later today is the US services PMI data double for May - surveys coming from both the Institute for Supply Management and S&P Global, with April factory orders and durable goods also on the tape."
In equity markets, Circor International surged in pre-market trade after the machinery maker agreed to be bought by investment firm KKR in a $1.6bn deal.
Elsewhere, cybersecurity firm Palo Alto rallied on expectations it will replace Dish Network in the S&P 500. The latter tumbled.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN