Stock Futures Higher After U.S. Adds Fewer-Than-Expected 156,000 Jobs in August
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Stock futures were higher on Friday, Sept. 1, and the Dow Jones Industrial Average was on track to regain 22,000 even after fewer jobs were added to the U.S. economy than expected in August.
Dow futures were up 0.28%, S&P 500 futures added 0.23% and Nasdaq futures gained 0.21%. Should the S&P 500 close higher on Friday, it will mark its sixth straight day in the green. Any gains for the Nasdaq would mean a fresh record close.
The U.S. economy added 156,000 jobs in August, according to the Labor Department. Economists surveyed by FactSet anticipated 180,000 jobs to have been added to nonfarm payrolls in August. July's job increase was cut to 189,000 from 209,000, while June's increase was cut to 210,000 from 231,000.
The U.S. unemployment rate increased to 4.4% from 4.3%, a surprise to economists looking for an unchanged reading. Hourly wages rose by 2.5% over the past 12 months, a flat reading from July.
Also on the economic calendar Friday: The PMI manufacturing index for August is scheduled for release at 9:45 a.m. ET, with the final reading on consumer sentiment for August, construction spending for July, and the ISM Manufacturing Index for August to be issued at 10 a.m.
Crude oil prices were lower ahead of a weekly reading on drilling activity in the U.S. from Baker Hughes. Rig count data is set for its normal release time of 1 p.m. On Wednesday, the Energy Information Administration reported that U.S. crude stockpiles fell by 5.4 million barrels in the past week, more than double a consensus of a 1.9 million-barrel drop. Gasoline stockpiles were unchanged, while distillates added 700,000 barrels.
Prices have also been erratic this week as investors assessed the impact of Hurricane Harvey on drilling and refining activity in the Texas and Louisiana area. Harvey has forced the shutdown of some major refineries along the Gulf Coast. According to some estimates, about a quarter of the U.S. refining industry was shut down.
West Texas Intermediate crude was down 0.8% to $46.86 a barrel on Friday morning.
Major U.S. automakers, including Ford Motor Co. (F) - Get Report and General Motors Co. (GM) - Get Report , are expected to post sales for August throughout the day. Hurricane Harvey, which has been downgraded to a tropical storm and was moving inland, could reduce the number of auto sales made in August by 2%, Edmunds estimated, with declines continuing into September.
Hard-hit Texas is the second-largest auto market in the U.S. with 9% of the nation's retail sales, Edmunds' Jessica Caldwell said, "So an event of this magnitude is going to make a dent in sales."
Edmunds said Texas is the top sales market for Ford, General Motors-owned GMC and Cadillac, Fiat Chrysler Automobiles-owned (FCAU) - Get Report RAM, and Mitsubishi Motors Corp. vehicles.
Lululemon Athletica Inc. (LULU) - Get Report spiked nearly 6% in premarket trading after guiding for a positive full year. The sportswear brand anticipates full-year revenue between $2.545 billion and $2.545 billion, a surprise after weak spring sales earlier in the year contributed to conservative estimates.
Lululemon also exceeded second-quarter estimates. Earnings of 36 cents a share came in a penny over expectations, while comparable-store sales increased 7%. Revenue rose 13% to $581.1 million, above expectations of $567 million.
Palo Alto Networks Inc. (PANW) - Get Report added more than 7% after besting quarterly estimates. The security tech developer earned 42 cents a share, or an adjusted 92 cents a share. Analysts expected adjusted earnings of 79 cents. Revenue reached a record $509.1 million, the first time above $500 million in Palo Alto's history. Sales climbed 27%. Palo Alto anticipates record revenue of more than $2 billion for the full year.
Chief Financial Officer Steffan Tomlinson also announced he will retire. Tomlinson will remain in his position until a suitable replacement has been found.
Updated from 7:47 a.m. ET, Sep. 1.
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