Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S.
Brendan Mcdermid | Reuters
U.S. stock futures ticked up Sunday night after the major averages ended the previous week in the green on a weaker-than-expected jobs report, which revived hopes of the Federal Reserve cutting interest rates soon.
Dow Jones Industrial Average futures rose 55 points, or 0.1%. S&P 500 and Nasdaq-100 futures added 0.2% each.
Last week, the Dow and Nasdaq gained 1.1% and 1.4% each, while the S&P 500 gained 0.5%. The broad market index and the Dow rose to their best days since late February and March, respectively. Fresh nonfarm payrolls data on Friday showed the U.S. economy added fewer-than-expected jobs in April and an increase in unemployment, easing fears of an overheating economy. Traders became enthusiastic that the Fed could start lowering rates sooner this year.
“It feels a little early to declare that the U.S. economy has made a soft landing since the Fed still is holding interest rates at restrictive levels. But the April jobs report helps clear a path to that destination,” said Comerica Bank chief economist Bill Adams.
Warren Buffett’s Berkshire Hathaway held its annual shareholder meeting Saturday, during which it announced it reduced its stake in Apple by 13%.
While the peak of the first-quarter earnings season has passed, investors are still watching key companies set to report this week, including Dow member Disney on Tuesday and Uber on Wednesday.
“Earnings beats have rebounded in Q1, helped by margins,” Barclays’ Emmanuel Cau wrote in a Friday note. “While misses got punished, overall earnings resilience has likely limited the downside for equities.”
On the economic front, Richmond Fed president Tom Barkin and New York Fed president John Williams are both scheduled to speak on Monday.
