Here are five things you need to know for Friday June 4th.
1. – Stock futures mixed in the run-up to the job report
Stock futures were mixed on Friday as traders waited for key US jobs data after an encouraging unemployment result.
Contracts related to the Dow Jones Industrial Average fell 22 points, S&P 500 futures rose 2 points and Nasdaq futures rose 17 points.
The Department of Labor will release the report on non-farm payrolls for May on Friday. Economists surveyed by FactSet estimated the US created 650,000 jobs in May after adding less-than-expected 266,000 jobs in April.
Investors have been vigilant for signs of inflation and whether the Fed might put a brake on the US economic recovery sooner than expected. A strong US employment report could further fuel these concerns.
Fed officials have repeatedly said it is too early to withdraw support for an economy that is just beginning to recover from the COVID-19 pandemic.
“The main concern in the markets is rightly inflation,” Cliff Hodge, chief investment officer of Cornerstone Wealth, told the Associated Press. “Data points are starting to support the view that inflation is likely to be stickier.”
Stocks closed on Thursday, but from their lows after US private payrolls rose the most in nearly a year in May and weekly jobless claims plummeted to a pandemic low.
2. – Friday calendar: non-farm pay slips for May
The U.S. Economic Calendar for Friday includes the U.S. Salary Report for the non-agricultural worker for May at 8:30 p.m. ET. The unemployment rate is forecast at 5.9% last month, up from 6.1% in April.
The calendar also includes a speech by Federal Reserve Chairman Jerome Powell at 7 a.m. at the Green Swan 2021 Global Virtual Conference and Factory Orders for April at 10 10 a.m.
3. – Elon Musk points out a split from Bitcoin
A cryptic tweet from Tesla (TSLA) – Get the report CEO Elon Musk, who hinted at a split from Bitcoin, overturned the world’s largest cryptocurrency early Friday.
Bitcoin fell 5.94% to $ 36,698 after Musk posted the tweet adding the hashtag #Bitcoin with a broken hearted emoji. He was also referring to lyrics from “In the End,” a song by Linkin Park.
It’s not the first time Musk has stirred up the crypto sector. Last month, Musk tweeted that Tesla would no longer accept payments in bitcoin, citing the environmental impact of bitcoin mining.
He also said in May that his electric vehicle company hadn’t sold any of its holdings of Bitcoin, clarifying an earlier ambiguous tweet that suggested Tesla may have done so.
Bitcoin hit a record high of more than $ 64,000 in April. Despite wild price fluctuations, Bitcoin remains up more than 25% for the year.
4. – AMC extends losses after selling shares
AMC entertainment (AMC) – Get the report declined more than 5% in pre-trading, extending losses from the previous session following a stock sale that raised $ 587 million for the troubled cinema chain that has become a retail favorite.
The stock lost 5.88% to $ 48.32 in early trading on Friday. It closed down nearly 18% on Thursday, but lost even more pronounced declines after AMC announced the completion of the share sale.
AMC stock is up 2,320% so far in 2021.
However, Thursday’s stock sale came with a warning from AMC that it was on the verge of bankruptcy a few months ago.
“We believe that recent volatility and our current market prices reflect market and trade dynamics unrelated to our underlying business or macro or industry fundamentals, and we do not know how long those dynamics will last,” said AMC in a filing with the Securities and Exchange Commission.
“In these circumstances, we caution you not to invest in our Class A common stock unless you are willing to take the risk of losing all or part of your investment.”
AMC Slides as CEO Adam Aron pleads for another 25 million share sale
5. – Broadcom issues bullish guidance for the third quarter
Broadcom (AVGO) – Get the report issued an optimistic third quarter revenue outlook, beating estimates in the second quarter due to strong demand for the company’s semiconductors.
Broadcom expects third-quarter revenues of around $ 6.75 billion, which is above expectations of $ 6.6 billion. In addition, the company estimated that Adjusted EBITDA would be 60% of forecast sales, or about $ 4.05 billion, which is above estimates of $ 3.88 billion.
“Due to the strong demand for semiconductors in our various end markets, we delivered 20% year over year
Increase in semiconductor sales, ”said CEO Hock Tan.
“Our outlook for the third quarter predicts this growth compared to the previous year
as we continue to see strong demand from the service
Provider and Hypercloud. “
Jim Cramer and the team at Action Alerts PLUS, which Broadcom has in their portfolio, said the second quarter was very solid for the company, “with almost every item we are closely monitoring outperformers and the outlook for the Management was also stronger than expected.
“Meanwhile, the constraints within Broadcom’s supply chain seem to be improving, with Tan commenting that hourly times have now stabilized, with demand remaining strong as the booking volume we see today continues to grow,” added the AAP -Team added.
The stock was trading at $ 464.80 in the pre-trading session.