Market Futures Ahead of US Jobs Data
U.S. stock futures were subdued on Friday as investors awaited the Labor Department’s non‑farm payrolls. By 02:52 ET (06:52 GMT) Dow futures had slipped 66 points, or 0.1%, S&P 500 futures were essentially flat, and Nasdaq 100 futures rose 54 points, or 0.2%. The previous session saw the Nasdaq Composite close down 0.06%, the Dow Jones Industrial Average fall 0.85% breaking a five‑day winning streak, and the S&P 500 drop 0.18%. Tech‑heavy sentiment was dented by earnings from memory‑chip makers Sandisk and Western Digital, which posted solid results but outlooks that fell short of lofty expectations. The Dow’s decline was further weighed by weaker shares of Salesforce and UnitedHealth. Analysts at Vital Knowledge noted the S&P’s modest decline as “impressive” given a spike in Treasury yields, concerns over Federal Reserve communication strategy, and a rally in oil prices.
Non‑Farm Payrolls Outlook
The economic calendar is dominated by the July non‑farm payrolls report. Consensus forecasts project the U.S. economy added 88,000 jobs in July, up from the 57,000 jobs added in June, suggesting continued labor‑market resilience. The unemployment rate is expected to remain at 4.2%, unchanged from the prior month. Recent data indicate a shrinking labor force, with the labor‑force size falling by 720,000 between May and June, and the participation rate slipping to 61.5% in June – the lowest level since March 2021. Employment in the services sector contracted, while private‑sector employment rose by 44,000 in July compared with a 95,000 increase in June. Thomas Ryan, Senior North America Economist at Capital Economics, said recent U.S. growth data point to solid underlying demand despite these mixed labor signals. Investors are debating how the Federal Reserve may adjust interest rates in the coming months, balancing the need to curb energy‑driven inflation against the risk of harming the labor market.
Houthi Attack Raises Middle‑East Tensions
Saudi Arabia issued a fresh warning after Iran‑backed Houthi militants launched an attack that wounded 11 civilians – seven Saudis, one Yemeni, two Egyptians and one Pakistani. The strike heightened fears of an expanding regional conflict that could further disrupt oil supplies. While reports suggest progress on reopening the Strait of Hormuz, the conflict’s escalation could threaten transit volumes. U.S. President Donald Trump declined to confirm a definitive deal, describing the strait as “sort of open right now.” Shipping data indicate that tanker traffic through the strait remains well below pre‑war levels from February 2024. Iran’s foreign ministry said a joint statement with Oman will be issued only if “certain parties do not obstruct the process,” a veiled reference to the United States. Benchmark Brent crude futures were up 1.2% at $83.46 a barrel following the developments.
Meta Platforms Ordered to Pay Over $900 Million in New Mexico Child‑Safety Case
A New Mexico judge, Bryan Biedscheid, ordered Meta Platforms to contribute more than $900 million to a fund addressing harm to young users, marking one of the largest court rulings against a social‑media firm on child‑safety grounds. The 67‑page order mandates a $567 million abatement fund for behavioral‑health services, prevention programs, and related initiatives, in addition to a previously awarded $375 million civil penalty. The total liability for Meta in the case now stands at $942 million. The judge also required Meta to implement a series of platform‑safety changes for minors.
Berkshire Hathaway Quarterly Earnings Preview
Berkshire Hathaway is slated to release its quarterly earnings on Saturday. The conglomerate, now led by Greg Abel after Warren Buffett’s succession, reported an increase in first‑quarter operating profit despite geopolitical and economic headwinds affecting its portfolio companies. Berkshire’s cash balance remains robust at $380.2 billion. Recent strategic moves include a $2.65 billion investment in Delta Air Lines and a modest holding in Macy’s, while the firm trimmed positions in Amazon, Visa and Mastercard.