2023-07-07 06:03:59 ET
Stock index futures were expectedly non-committal Friday as investors waited to see if the official June payrolls figures come in as strong as the ADP report.
S&P futures ( SPX ), Dow futures ( INDU ) and Nasdaq 100 futures ( NDX:IND ) were all moving less than 0.1%.
"Bonds have been steadily selling off of late, but this went into overdrive after a stunningly strong ADP which isn’t usually the most reliable monthly print, but it was a question of sell first ask questions later after the release," Deutsche Bank's Jim Reid said. "We’ll have to see if those ( ADP ) numbers are backed up by today’s jobs report, but investors weren’t waiting for that as they priced in more hikes from central banks and fewer cuts next year."
The 10-year Treasury yield ( US10Y ) was up 1 basis point to 4.05%. The 2-year yield ( US2Y ) fell 2 basis points to 4.99%.
"The American economy is fighting back, despite what the Fed has been up to," ING said. " The 10yr is now at over 4%. We think it will stay above 4% over the coming weeks and potentially months. And the 2yr will hold on to a 5% handle, with a 100bp curve inversion being sustained."
The big report hits before the bell with economists expecting June nonfarm payrolls to have risen by 225K and the jobless rate to stay steady at 3.7%.
"The bigger picture here is that the flattening in job growth this year is hard to explain, given rising layoffs and the tightening of credit conditions," Panthoen Macro's Ian Shepherdson wrote. "Some post-pandemic hiring likely continues to support payroll growth, especially in the leisure and hospitality sector, where employment is still about 300K lower than in early 2020, but we’re struggling with the idea that the cyclical component of hiring is little changed or has even strengthened this year, given the lagged impact of the Fed’s cumulative rate hikes."
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S&P, Dow, Nasdaq futures cautious ahead of June jobs numbers