U.S. stock futures experienced a slight dip on Friday morning as Wall Street braced for the release of the crucial May jobs report. Investors are closely monitoring the data for insights into the labor market’s health and potential implications for Federal Reserve policy.
Adding to market movement, Lululemon Athletica shares plummeted over 11% in after-hours trading after the company revised its financial outlook downwards. Meanwhile, Asian markets broadly declined, with South Korea’s Kospi index leading the losses, influenced by a global tech sector downturn.
S&P 500 futures edged lower in early Friday trading as market participants awaited the highly anticipated May jobs report.
Futures linked to the S&P 500 saw a slight decline of approximately 0.61%. The tech-heavy Nasdaq 100 futures followed suit, dipping 1.19%. Meanwhile, futures for the Dow Jones Industrial Average showed a more modest decrease, down 26 points, or less than 0.1%.
In the previous day's after-hours trading, Lululemon Athletica shares experienced a significant drop of 11%. This downturn followed the athleisure company's announcement that it was lowering its full-year earnings and revenue guidance, citing prevailing economic headwinds. The company's outlook for the current quarter also fell short of analyst expectations.
During Thursday's regular trading session, the Dow Jones Industrial Average registered a substantial gain, climbing 874.86 points, or 1.73%, to achieve a fresh record closing high. The S&P 500 index advanced by 0.41%, while the Nasdaq Composite edged down by 0.09%, influenced by a sector rotation away from technology stocks.
Charles Kantor, senior portfolio manager at Neuberger Wealth, commented on CNBC's "Closing Bell: Overtime" on Thursday afternoon, discussing the market's breadth. "A lot of us would prefer a broadening of the market, and when we say that I think it's no longer broadening away from Mag Seven, it's really a broadening away from semi-cap equipment and hardware," Kantor stated. He added, "You had a little bit of that today, but the pipeline of demand for stuff related to building out compute and data centers from now even into 2030 is a powerful force."
Investors are now keenly focused on the May nonfarm payrolls report, scheduled for release at 8:30 a.m. ET on Friday morning.
Economists polled by Dow Jones anticipate that the latest figures will indicate the addition of approximately 80,000 jobs last month, a decrease from the average of 150,000 jobs recorded over the preceding two months. The consensus forecast also suggests the unemployment rate will remain steady at 4.3%, consistent with April's figure.
In geopolitical news, President Donald Trump stated on Thursday that he would be "honored" to meet with Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, "if it was to make a deal." The ongoing U.S.-Iran conflict, now in its fourth month, has been characterized by a fragile ceasefire.
The S&P 500 is currently on track for its 10th consecutive week of gains, a streak not seen since 1985, with a weekly increase of less than 0.1%. The Dow Jones Industrial Average is poised to end the week up 1%, while the Nasdaq Composite is expected to finish the week with a loss of 0.5%.
- South Korea stocks plunged 4.11%, with major tech players like Samsung and SK Hynix seeing significant declines, mirroring the global tech sell-off.
- Asian markets broadly declined, with Japan's Nikkei 225 down 1.1%, Australia's S&P/ASX 200 lower by 0.2%, Hong Kong's Hang Seng index down 0.46%, and China's CSI 300 down 0.29%.
- Lululemon Athletica shares dropped 11% in after-hours trading following a reduction in its full-year earnings and revenue guidance.
- ServiceTitan shares surged 13% after the company raised its full-year guidance for adjusted income from operations.
- Argan shares gained 12%, driven by first-quarter results that exceeded expectations.
- S&P Dow Jones Indices announced no changes to index eligibility criteria, meaning companies like SpaceX, planning an IPO, will need to trade for at least 12 months before being considered for S&P 500 inclusion.
— CNBC's Jeff Cox and Garrett Downs contributed to this report.
South Korea stocks fall 4% as tech heavyweights follow plunge in Wall Street’s AI-linked names
South Korea stocks plunged Friday, leading losses in the region, as the slump in Wall Street tech names overnight spread into Asia dragging benchmark indexes lower.
The Kospi was last down 4.11%, with heavyweights Samsung and SK Hynix dropping 6% and 8%, respectively, while the small-cap Kosdaq fell 2.41%.
Japan's benchmark Nikkei 225 lost 1.1%.
Australia's S&P/ASX 200 was 0.2% lower.
Hong Kong's Hang Seng index was down 0.46%, while the CSI 300 declined 0.29%.
— Lee Ying Shan
Trump said he would be 'honored' to meet Iran's supreme leader 'if it was to make a deal'
On Thursday, President Donald Trump said that he would be "honored" to meet Iranian Supreme Leader Ayatollah Mojtaba Khamenei "if it was to make a deal."
"If we make a deal, it's possible that I would meet," he said. "I'd be okay with that."
Trump added that he expects Khamenei to be a "professional."
"In some circles, he has a very good reputation, actually," the president said.
— Garrett Downs and Lisa Kailai Han
Stocks making the biggest moves after the bell: Lululemon Athletica, ServiceTitan and more
These are the stocks moving the most in extended-hours trading:
- Lululemon Athletica — Shares sank 11% after the athleisure company lowered its full-year earnings and revenue guidance, citing headwinds.
- ServiceTitan — The software platform provider with a focus on contractors saw shares pop 13%. ServiceTitan raised its guidance for the full year and now sees adjusted income from operations in a range of $142 million to $147 million.
- Argan — The construction engineering company gained 12%. First-quarter results surpassed expectations, with Argan earning $3.24 per share on revenue of $291 million.
Read the full list of stocks moving here.
— Lisa Kailai Han
S&P Dow Jones Indices stands pat on index eligibility rules
On Thursday, S&P Dow Jones Indices announced that it would make no changes to the eligibility criteria for adding stocks to the S&P 500, S&P MidCap 400 or S&P SmallCap 600.
As part of its decision, S&P Dow Jones Indices will continue to require initial public offerings to trade on an eligible exchange for at least 12 months before being considered or addition to an index. One of the proposed changes the firm was weighing included shortening this so-called IPO seasoning period to six months.
S&P Dow Jones Indices' move followed a consultation with market participants on potential changes to the indexes' methodologies.
Elon Musk's SpaceX plans to go public at the Nasdaq next Friday, with a valuation of $1.77 trillion. With S&P Dow Jones Indices opting to keep its eligibility criteria the same, it could take SpaceX at least a year to join the S&P 500. In turn, this could result in dramatic variations between the broad market index's returns versus those of other averages.
— Lisa Kailai Han
S&P 500 futures open slightly lower
On Thursday night, S&P 500 futures opened marginally lower, or down less than 0.2%.
Shortly after 6 p.m. ET, Nasdaq 100 futures shed 0.3%. On the other hand, Dow futures were trading around the flatline.
— Lisa Kailai Han
