Editorial StaffStock futures are higher ahead of Friday’s crucial August jobs report; Japan PM resigns, markets soar; Broadcom sees 5G sales boost; Ohio Governor wants answers in Bishop Sycamore football fiasco.
1. — Stock Futures Edge Higher Ahead of Jobs Report
U.S. equity futures edged higher again Friday, following on from another twin set of record closes for the S&P 500 and the Nasdaq last night, as investors prepped for what could be a crucial August jobs report prior to the start of trading.
Analysts estimate that job creation slowed last month as Delta variant infections surged and supply chain disruptions held back some activity in the manufacturing and hosing sectors, with forecasts suggesting 750,000 net new jobs were added to payrolls in August, down from 943,000 in July.
A softer-than-expected reading, or indeed a surprise jump in hiring, could change the way investors view the Federal Reserve’s timetable on tapering — the pace at which the central bank will slow its $120 billion in monthly bond purchases — and the overall momentum of the post-COVID recovery over the final months of the year.
Futures contracts tied to the Dow Jones Industrial Average are indicating a modest 50 point gain ahead of the 8:30 am data release, with those tied to the S&P 500 priced to add another 6 points to last night’s record high close of 4,537.01 points.
Tech stocks are also on the rise, and with benchmark 10-year Treasury note yields holding south of 1.3%, the Nasdaq Composite index is set to gain around 7 points at the start of trading.
2. — Japan PM Suga Steps Down, Stocks Soar
Japan’s beleaguered Prime Minister, Yoshihide Suga, surprised markets in Asia Friday by announcing plans to step down in the coming weeks, ending an unpopular tenue at the head of the world’s third largest economy.
Suga, 72, took over the office of Prime Minister following the resignation of Shinzo Abe but has struggled to maintain the initial enthusiasm for his leadership in the face of a surge in coronavirus infections and the perceived mis-handling of the economy. Suga’s successor is likely to face national elections in October.
Japan’s Nikkei 225 surged 2.05% to close at a three-decade high of 29,128.11 points following news of Suga’s departure, with investors betting his replacement could trigger a fresh round of fiscal stimulus for the pandemic hit — and export focused — economy.
3. — Broadcom Sees 5G Bets Boosting Revenues
Broadcom (AVGO) – shares edged only modestly higher Friday after the network equipment and semiconductor maker forecast stronger-than-expected current quarter revenues after beating Wall Street earnings forecasts late last night.
The U.S. Federal Aviation Administration said SpaceShipTwo “deviated from its Air Traffic Control clearance as it returned to Spaceport America” in New Mexico, adding that it won’t permit the plane to make further flights until it is satisfied there was no public danger during the July 11 voyage — known as ‘Unity 22’ — the first ever for a commercial spacecraft.
Virgin Galactic shares were marked 0.23% lower in pre-market trading Friday to indicate an opening bell price of $25.93 each.
4. — Virgin Galactic Grounded
U.S. officials grounded Billionaire Richard Branson’s Virgin Galactic ‘SpaceShipTwo’ from further flights la following a probe into the craft’s decent from its maiden flight into space in early July.
Stock futures are higher ahead of Friday’s crucial August jobs report; Japan PM resigns, markets soar; Broadcom sees 5G sales boost; Ohio Governor wants answers in Bishop Sycamore football fiasco.
5. — Ohio Governor Seeks Answers in Bishop Sycamore Fiasco
Ohio Governor Mike DeWine has called for an investigation into the football program — as well as the mysterious origins — of the now infamous Bishop Sycamore High School.
Bishop Sycamore, a newly-established online academy that appears to have no fixed address, little funding an no classrooms or teachers, runs a high school football program in Columbus, Ohio that made its way onto Walt Disney’s DIS ESPN last week in a nationally-televised game against Florida-based powerhouse IMG Academy.
After losing 58-0 in a game that was even more lopsided than the final score, reports began to surface about the nature of the school, the age of the players involved and background of the coaches and administrators associated with what many now are calling a ‘fake school’.
Source: The Street
