Here are five things to know for Friday, June 4:
1. – Pre-employment Mixed Stock Futures Report
Stock futures were mixed on Friday as traders expected key US employment data after an encouraging reading on unemployment.
Contracts linked to the Dow Jones Industrial Average were down 22 points, S&P 500 futures were up 2 points, and Nasdaq futures were up 17 points.
The Labor Department will release the May nonfarm payroll report on Friday. Economists surveyed by FactSet estimated that the United States added 650,000 jobs in May following an April increase of 266,000 fewer than expected.
Investors have been watching closely for signs of inflation and signs of whether the Fed could slow the recovery in the US economy earlier than expected. A strong employment report in the United States could further stoke those concerns.
Fed officials have repeatedly said that it is too early to withdraw support for an economy that is just beginning to recover from the COVID-19 pandemic.
“The main concern in the markets, rightly so, is inflation,” Cliff Hodge, chief investment officer at Cornerstone Wealth, told the Associated Press. “The data is beginning to confirm the view that inflation is likely to be stiffer.”
Stocks ended lower but fell from their lows on Thursday after private payrolls in the US In May rose the most in nearly a year and weekly jobless claims fell to a pandemic low.
2.- Friday Calendar: May Non-Farm Payrolls
The US Economic Calendar for Friday includes the US Non-Farm Payroll report for May at 8:30 am ET. Last month’s unemployment rate is forecast at 5.9%, down from 6.1% in April.
The schedule also includes a speech from Federal Reserve Chairman Jerome Powell at 7 a.m. at the 2021 Green Swan Global Virtual Conference and Factory Orders for April at 10 a.m.
3. – Elon Musk hints at a breakout with Bitcoin
A cryptic tweet from Tesla (TSLA) – Get report CEO Elon Musk, who hinted at a breakout with Bitcoin, caused the world’s largest cryptocurrency to crash early Friday.
Bitcoin was down 5.94% to $ 36,698 following Musk’s tweet in which he wrote the hashtag #Bitcoin with a heartbroken emoji. He also referenced the lyrics to “In the End”, a Linkin Park song.
It is not the first time that Musk has affected the cryptocurrency sector. Last month, Musk tweeted that Tesla would no longer accept payments in Bitcoin, citing the environmental impact of Bitcoin mining.
He also said in May that his EV company had not sold any of its Bitcoin holdings, clarifying an earlier ambiguous tweet hinting that Tesla might have.
Bitcoin hit a record high of over $ 64,000 in April. Despite the wild twists in its price, Bitcoin continues to climb over the year by more than 25%.
4. – AMC extends losses after the sale of shares
AMC entertainment (AMC) – Get report declined more than 5% in pre-market trading, extending losses from the previous session following a stock sale that raised $ 587 million for the struggling theater chain that has become a crowd favorite of retail operations.
The stock was down 5.88% in pre-market trading on Friday at $ 48.32. It closed down nearly 18% on Thursday, but cut even more significant declines after AMC said it completed the stock sale.
AMC shares are up 2,320% so far in 2021.
However, Thursday’s stock sale came with a warning from AMC, which came close to bankruptcy just a few months ago.
“We believe that recent volatility and our current market prices reflect commercial and market dynamics unrelated to our underlying business, or macroeconomic or industry fundamentals, and we do not know how long these dynamics will last,” AMC said in a document presented to Securities. and Exchange Commission.
“Under the circumstances, we advise you not to invest in our Class A common shares unless you are willing to risk losing all or a substantial portion of your investment.”
AMC slides as CEO Adam Aron advocates another 25 million share sale
5. – Broadcom issues a bullish forecast for the third quarter
Broadcom (AVGO) – Get report issued a bullish revenue outlook for the fiscal third quarter and beat estimates in the second quarter due to strong demand for the company’s semiconductors.
Broadcom said it expects third-quarter revenue of about $ 6.75 billion, higher than expectations of $ 6.6 billion. Additionally, the company estimated that Adjusted EBITDA would be 60% of projected revenue, or about $ 4.05 billion, above estimates of $ 3.88 billion.
“Due to the strength of semiconductor demand in our multiple end markets, we deliver 20% year over year
increased semiconductor revenue, “said CEO Hock Tan.
“Our prospects for the third quarter project this growth year over year.
to sustain, as we continue to see strong demand for the service
providers and hypercloud “.
Jim Cramer and the Action Alerts PLUS team, which maintains Broadcom in his portfolio, he said that the second quarter was very strong for the company, “as almost all the line items that we looked at closely performed better than expected, and management’s future outlook was also stronger than expected. anticipated”.
“Meanwhile, constraints within Broadcom’s supply chain appear to be improving, with Tan commenting that ‘hourly times have now stabilized’ and demand remains strong as’ the volume of bookings we are experiencing today continues to grow, ‘”added the AAP team.
The stock remained flat in the pre-market price at $ 464.80.