US Stock Futures Inch Higher As Markets Await Jobs Data And Trade Deal News

U.S. stock futures held up resiliently early Thursday, signaling that the market could finish the holiday-shortened week on a high note. Thursday’s session will be shortened due to the Independence Day holiday observed on Friday, with volume likely tapering off further.

The monthly jobs data would be the primary driving catalyst, while traders may also stay tuned to any news trickling on the trade deal front following the agreement President Donald Trump announced with Vietnam, and progress on the president’s ‘one, big beautiful’ tax bill.

On Thursday, the broader market resumed its uptrend as rising rate-cut odds, following a weak ADP private payrolls report and the Vietnam trade deal, perked up buying interest. The S&P 500 Index rose to a fresh intraday high of 6,227.60 and also closed at a record of 6,227.42. 

IT, material and consumer discretionary stocks advanced strongly, helping to offset the weakness in the healthcare and material spaces.  A strong rebound by electric-vehicle maker Tesla (TSLA) also added strength to the rally.

However, the Dow Jones Industrial Average mainly traded below the unchanged line and ended marginally lower, although off the session lows. UnitedHealth (UNH) and Travelers Companies (TRV) served as the biggest drags on the Dow.

The Invesco QQQ Trust (QQQ) ETF and iShares Russell 2000 ETF (IWM) jumped 0.70% and 1.39%, respectively.

While the SPDR S&P 500 ETF (SPY) added 0.45%, the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged down 0.04%.

Thursday has its fair share of Main Street catalysts despite it being an abbreviated session. The June non-farm payrolls report, the weekly jobless claims data, the May trade deficit report, and a pair of service sector readings could take center stage during the session.

The monthly jobs report is expected to show a non-farm payroll gain of 110,000 for June, compared to the 139,000 jobs added in the previous month. The jobless rate is expected to tick up to 4.3% from 4.2%, and the average hourly earnings — a measure of inflation — may have increased at a steady pace of 3.9%.

Atlanta Federal Reserve President Raphael Bostic is scheduled to speak at 11 a.m. ET.

Also on tap is the Commerce Department’s factory goods orders report for May.

The rally in crude oil has stalled, with the West Texas Intermediate futures retreating moderately, while gold has gained ground. The 10-year U.S. Treasury yield slipped in the Asian session after it rose sharply on Wednesday amid worries about the impact of the tax bill on the fiscal situation.

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