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Nasdaq Index, Dow Jones, S&P 500 News: Mixed Sentiment Ahead of Key Jobs Report

By:
James Hyerczyk

Dow Jones, S&P 500 and Nasdaq present mixed outlook ahead of US Non-Farm Payrolls report, as AMD challenges Nvidia with new AI chips.

S&P 500 Index, Nasdaq Composite, Dow Jones

In this article:

Highlights

  • U.S. Stock Futures Mixed Before Jobs Data
  • GameStop, Chewy, Rivian Show Notable Premarket Moves
  • Labor Market Data Sets Stage for Caution in Markets

U.S. Investors Brace for Jobs Report

As global investors anticipate Friday’s crucial jobs report, U.S. stock futures present a mixed picture. Dow futures have shown a marginal decrease, while S&P 500 and Nasdaq 100 futures have risen, reflecting varied investor sentiments. The price action suggests that many of the major players are sitting on the sidelines ahead of the Non-Farm Payrolls report.

Key Stocks Making Moves Ahead of the Cash Market Opening

In premarket trading, certain stocks have shown notable movements:

GameStop’s shares dropped 8% post their earnings report, revealing a slight loss which wasn’t clearly comparable to LSEG estimates.

Chewy’s shares fell 10% following third-quarter results that didn’t meet expectations.

Rivian’s stock rose by 2.6% after Stifel initiated coverage with a positive outlook, highlighting Amazon’s substantial vehicle purchase agreement.

Significant Developments in Tech and Retail Sectors

In the tech sector, Advanced Micro Devices’ shares surged over 2% after unveiling new AI chips, signaling a direct challenge to Nvidia’s dominance. Prominent companies like Meta Platforms and Microsoft have shown interest in AMD’s latest offering.

In the retail domain, Dollar General’s stock climbed nearly 3% premarket, driven by better-than-expected earnings and solid guidance, aligning with Wall Street forecasts.

Labor Market Data Influences Market Outlook

The labor market has been a focal point, with recent data showing a mix of trends. Thursday’s jobless claims were slightly lower than expected, indicating steady layoffs. However, the slight increase in initial claims and the highest level of job openings since March 2021 paint a complex picture of the labor market. This has led to heightened anticipation for Friday’s jobs report, with economists expecting the addition of 190,000 jobs in November.

Short-Term Forecast: A Cautious Outlook

The mixed signals from the labor market and corporate earnings have led to a cautious short-term outlook for the U.S. market. Investors are closely watching for any signs that might influence the Federal Reserve’s upcoming decisions on interest rates, particularly in the context of the upcoming jobs report.

Technical Analysis

Daily E-mini S&P 500 Index

The S&P 500 Index, with its current daily price at 4576.00, is trading above both the 200-day and 50-day moving averages, set at 4320.32 and 4400.82 respectively. This positioning above key moving averages indicates a bullish trend in the medium to long term.

The index is currently hovering just above the minor support level of 4562.50, suggesting that this level could act as a pivotal point for short-term price movements. If the index maintains its stance above this support, it could signal continued bullish momentum. However, a break below this level might lead to a shift in sentiment towards bearishness.

In summary, the S&P 500 exhibits a bullish market sentiment in the short term, provided it sustains above the minor support level.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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