Premarket: S&P 500 Futures Rallies After NFP Jobs Report Smash Expectations

S&P 500 futures trade higher for one more day pointing to a positive opening recovering the modest loss from yesterday’s trading session. Stocks attract bids as NBA and theme parks prepare to reopen, while the protests about the death of George Floyd turn calmer yesterday. 

NFP Data Smash Expectations

Nonfarm Payrolls (NFP) increased by 2,5 million in May, smashing the expectations of -8 million jobs loss as per the data published by the US Bureau of Labor Statistics. The unemployment rate dropped to 13.3% while the forecast was looking for an increase to 20%. The Average Hourly Earnings came in at 6.7%, below the estimates of 8.5% while the Labor Force Participation Rate rose to 60.8% in May from 60.2%. 

Dow Jones futures are 1.82% higher at 26,731, the S&P 500 futures are 1.26% higher at 3,148 while the Nasdaq futures are 0.37% higher at 9,655. 

ECB Boosts European Stocks

ECB decision to add another 600 billion to the PEPP program support stocks in Europe. ECB now forecasts that the eurozone economy will contract by 8.7% this year and grow by 5.2% in 2021 and 3.3% in 2022.

Dax index is 1.76% higher at 12,648 although the German Factory Orders plunged 25.8% in April well below the expectations of -19.7% the yearly reading came in at -36.65% below the expectations of -7.4%. The CAC 40 index is 1.89% higher at 5,105. In London the FTSE 100 is 1.09% higher at 6,410, after the UK Halifax House Prices came in at -0.2%, topping the expectations of -0.7% in May. The Halifax House Prices yearly reading came in at 2.6% below the consensus of 2.8%.

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Crude Oil Price Retreat On News of the OPEC Meeting Cancelation 

Crude oil price rallies today ahead of the decision of the Organisation for Petroleum Exporting Countries’ (OPEC) on whether to extend their oil production output. WTI crude oil futures trade 3.07% higher at 38.45 while the Brent crude oil is 3.82% higher at $41.45 at the highest level since March 9.  

EURUSD trades at three-month highs as the common currency boosted by the ECB decision on the extension of the PEPP program. The British pound rally, stalled today at 1.2668 the 200-day moving average. 

Cryptocurrencies Pare Gains

Bitcoin is 1.52% lower at 9,640, giving up almost all of yesterday’s gains. The Litecoin (LTCUSD) trades 1.16% lower at 46.89. Ripple (XRPUSD) price is 0.79% lower at 0.2021, while Ethereum (ETHUSD) is 0.94% lower at 241.04. 

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