US Stock Market Investors Need Weak Jobs Data to Extend Gains

The major U.S. stock indexes are trading lower in the pre-market session shortly before the release of the November U.S. Non-Farm Payrolls report at 13:30 GMT. Economists expect the data to show the economy added 200,000 jobs last month, according to Dow Jones. This figure would be lower than the previously reported 261,000 in October. The unemployment rate is expected to come in at 3.7%.

The best scenario for stock market investors would be a lower headline number and an uptick in the unemployment rate. That would serve as confirmation the Fed’s rate hikes are working to slowdown the labor market. This would also reaffirm Fed Chairman Jerome Powell’s remarks from earlier this week that indicated policymakers are willing to begin slowing down the pace of future rate hikes.

At 13:00 GMT, Dow Jones Industrial Average futures are trading 34384.00, down 45.00 or -0.13%. The S&P 500 Index is at 4079.50, down 2.25 or -0.06% and the NASDAQ Composite is trading 12051.50, down 11.25 or -0.09%.

Pre-Market Movers and Shakers

A few stocks are making moves during the pre-market session according to CNBC.

Shares of chip maker Marvell Technology slide 4.9% in the premarket session after reporting quarterly sales and profits that fell short of Wall Street estimates and a weaker than expected outlook. The company is being hurt by inventory reductions from customers.

Cloud security company Zscaler shares are down 9.1% on its report of conservative guidance despite an expectation-beating quarter. Zscaler said customers are taking longer to close new deals.

DoorDash shares fell 2.8% in premarket trading after RBC Capital Markets downgraded the stock to “sector perform” from “outperform.” RBC praised the delivery service’s execution and management, but said it’s uncomfortable with the current valuation given the potential for order deceleration.

Tesla Shares Slightly Better

CNBC is also reporting that shares of Tesla are slightly higher in the premarket session after CEO Elon Musk delivered the first Semi trucks to Pepsi Co at an event on Thursday. The trucks were first unveiled in 2017 and originally due to be produced in 2019 but were delayed by the pandemic and other issues.

Short-Term Outlook

Bullish investors are hoping for a lower headline number, a rise in the unemployment rate and slower wage growth, but that’s a perfect scenario. Nonetheless, anything that shows weakness will be good. A greater than expected reading or a downtick in the unemployment rate will be bad news for stock prices.