(CercleFinance.com) – The New York Stock Exchange should open sharply higher on Friday morning following Apple’s strong results and the publication of data showing that job creation slowed last month.
Half an hour before the opening, futures contracts on the main New York indices climbed from 1.2% to 1.6%, announcing a green start to the session.
The number of job creations in the United States turned out to be lower than expected in April, an indicator likely to push the Federal Reserve to put in place measures to support activity.
According to the Department of Labor, the American economy generated only 175,000 non-farm jobs in April, a number well below market expectations which averaged around 250,000.
This is also a figure well below the average of 242,000 job creations per month observed over the last 12 months.
The unemployment rate also increased by 0.1 point to 3.9%, where economists expected stability at 3.8%.
Investors have inferred the disappointing statistics could push the Fed to cut interest rates sooner than expected.
‘It’s rare for US employment numbers to miss market estimates and could potentially put an end to the ‘high rates for longer than expected’ rhetoric that we’re starting to get used to,’ says Mahmoud Alkudsi, market analyst at ADSS.
As a result, the scenario of a first rate cut in September is once again popular, with the market now setting the probability of monetary easing at this time at more than 48%.
On the bond market, the yield on ten-year Treasuries fell sharply again after the publication of employment figures, to nearly 4.48%, while the dollar weakened against the euro, the single currency rebounding beyond 1.0790.
US stock markets should also benefit from strong results from Apple, which last night reported ‘record’ EPS for a quarter ended in March.
‘Apple’s ecosystem, whose installed base now exceeds 2.2 billion devices globally, continues to grow at a significant pace, which should enable the group to increase revenues from services, such as This record performance illustrates this,” react Canaccord Genuity analysts.
The stock – down 10% since the start of the year – gained more than 6% in pre-stock market quotations and should support the entire technology sector.
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