Stock futures tick higher as traders await delayed January jobs report: Live updates
The stock market is abuzz with anticipation as traders eagerly await the release of the delayed January jobs report. This highly anticipated data, which was delayed due to a partial government shutdown, is expected to shed light on the state of the U.S. labor market and economy. Economists predict little to no growth in January, with a consensus calling for a gain of 55,000 jobs, a slight increase from December's 50,000.
The Bureau of Labor Statistics' report, due Wednesday morning, will also provide insights into the unemployment rate, currently projected to land at 4.4%. Additionally, traders will be keenly watching for any revisions from the BLS, which could offer a more comprehensive picture of the job market's health.
Krishna Guha, head of economics and central bank strategy at Evercore ISI, highlighted the challenges in interpreting labor data due to the recent shutdown and economic uncertainties. He noted a weaker relationship between growth and employment, attributing it to both uncertainty and potential secular AI-related effects on the labor market.
The market's sentiment is already negative, following weaker-than-expected consumer data released on Tuesday. Consumer spending in December was flat, falling short of the expected 0.4% monthly gain. This has investors on edge, especially with the launch of a new AI-powered tax planning tool by tech platform Altruist, causing a decline in financial services firms' stocks.
Despite the market's volatility, the Dow Jones Industrial Average managed to notch another all-time high, showcasing its resilience. However, the S&P 500 and Nasdaq Composite experienced losses, with the S&P 500 slipping 0.3% and the Nasdaq Composite losing 0.6%.
As the week progresses, traders will be keeping a close eye on other economic data, such as the consumer price index, a key indicator of inflation, which is expected to be released on Friday. The market's reaction to these reports will be crucial in shaping the investment landscape.
In after-hours trading, stocks like Robinhood, Lyft, Ford Motor, and Mattel experienced significant moves, with Robinhood tumbling 7% and Lyft shares dropping 17%. Meanwhile, Moderna shares fell over 8% after the company announced the FDA would not review its application for an experimental flu shot.
The stock futures opened slightly higher on Tuesday evening, with S&P 500 futures advancing 0.1%, Nasdaq 100 futures gaining 0.2%, and Dow Industrial Average futures rising 0.2%. The market's sentiment remains cautious, with traders awaiting the release of the jobs report and other economic data, which could significantly impact the market's trajectory.
