Stock futures were little changed early Friday as investors awaited January’s significant jobs report. Futures tied to the Dow Jones Industrial Average fell 34 points, or 0.08%, while S&P 500 futures and Nasdaq 100 futures also traded near the flatline.
Stock futures little changed ahead of January jobs report
The S&P 500 rose 0.4% on Thursday following healthy gains across stock markets in Europe and Asia. The Dow Jones Industrial Average decreased by 125 points, or 0.3%, and the Nasdaq composite gained 0.5%.
Tapestry, the owner of the Coach and Kate Spade brands, significantly boosted the market by jumping 12%. The company reported stronger-than-expected profits for the latest quarter, driven by an influx of new, younger customers, and raised its forecast for revenue and profit growth for the fiscal year.
Philip Morris International saw a 10.9% increase in its shares after it revealed profits that exceeded expectations, along with financial forecasts that also surpassed market predictions. Analysts highlighted strength in the sales of its Zyn nicotine pouches.
Conversely, Amazon’s stock tumbled 4% in extended trading due to disappointing guidance. The e-commerce giant projected revenue growth of only 5% to 9% for the first quarter, marking its weakest growth forecast on record, which overshadowed its strong quarterly earnings.
Futures for major indexes opened slightly lower, with the Dow Jones Industrial Average futures hovering near the flatline, while S&P 500 and Nasdaq futures fell by 0.1% each.
The earnings season has shifted focus towards discussions around artificial intelligence (AI), particularly after the impact of DeepSeek on the industry. High costs for AI development at companies like Meta and Microsoft have prompted investor caution, and Amazon’s earnings reflected ongoing concerns, as its shares dropped similarly to patterns seen with Google and AMD following their earnings releases.
Ford Motor experienced a 7.5% drop in its stock despite reporting stronger profits and revenues than analysts had anticipated. Investors concentrated on Ford’s 2025 financial forecasts, which included “headwinds related to market factors.”
During Thursday’s trading session, both the S&P 500 and Nasdaq Composite recorded gains, marking three consecutive winning sessions for each index, while the Dow underperformed with a decline of approximately 0.3%.
While certain landmark companies faced declines, AI developments aided some stocks. Palantir’s military analytics business rose 10%, continuing its rally throughout the week, while Pinterest saw a 19% increase in extended trading due to effective advertising sales strategies utilizing AI.
A week filled with unpredictable tariff announcements from President Donald Trump has kept traders vigilant, prompting some to seek stability in safer assets. In response to market fluctuations, safe-haven gold reached all-time highs before pulling back after Thursday’s close.
In his statements, Trump indicated a desire to close a tax loophole benefiting hedge funds, allowing fund managers to pay capital gains tax instead of income tax on investment earnings.
As market participants await the January jobs report, set for release on Friday at 8:30 a.m. ET, expectations indicate hiring growth has slowed, with economists predicting an addition of 169,000 nonfarm payrolls for January, down from 256,000 in December. The unemployment rate is anticipated to remain steady at 4.1%.
A recent survey from the American Association of Individual Investors revealed that individual investor bearishness towards U.S. stocks reached a 15-month high, with 42.9% of participants expressing pessimism compared to 34% the previous week. The historical average for bearish sentiment is around 31%.
Bullish sentiment dropped to 33.3% from 41.0% last week, marking the lowest level in three weeks. In a special question posed during the survey, 52.5% of investors stated they believe U.S. stocks are overvalued, while 36.9% view valuations as mixed, with some sectors expensive and others inexpensive.
Peter Atwater of Financial Insyghts characterized the current market situation as resembling “Cat in The Hat Markets,” indicating chaos amidst fluctuating conditions. He noted that investors might expect continued volatility but warned of potential adverse consequences from miscalculated market optimism.
On Thursday night, U.S. stock futures slipped, with Dow Jones Industrial Average futures down 49 points, or 0.1%, while S&P 500 and Nasdaq 100 futures each decreased by about 0.2%.
Qualcomm’s stock decreased by 3.7% despite reporting profits that exceeded analysts’ forecasts. Analysts noted concerns regarding the wireless chip industry landscape amidst high expectations. Meanwhile, Treasury yields remained steady, with a report indicating that more U.S. workers filed for unemployment benefits than anticipated, though the figures remain relatively low historically.
Analysts are looking to the Friday jobs report for insights into the strength of the labor market, hoping for indicators that can stabilize concerns of a potential downturn while avoiding triggering inflation. Following Trump’s announcement of tariffs on China and temporary pauses for Canada and Mexico, market volatility has remained a significant concern.
In company news, Ralph Lauren shares rallied 9.7% following stronger-than-expected profit and revenue, especially in China. Eli Lilly’s stock rose 3.3% as demand for its diabetes and obesity treatments continued to enhance its profits. Conversely, Honeywell fell by 5.6% after announcing a split into three independent, publicly traded companies, a move that mirrors actions by other major conglomerates.
The S&P 500 concluded trading up by 22.09 points to 6,083.57, while the Dow Jones Industrial Average fell by 125.65 to 44,747.63, and the Nasdaq composite increased by 99.66 to 19,791.99.
Internationally, London’s FTSE 100 index rose by 1.2% following a cut in the main interest rate by the Bank of England, which also revised its growth forecast downwards. Stock indexes in Paris, Hong Kong, and Tokyo also reported gains of 1.5%, 1.4%, and 0.6%, respectively.
In Japan, Honda Motor Co. saw a decline, while Nissan Motor Corp. experienced a gain after reports suggested discontinuation of talks to establish a joint holding company. An update on the situation is expected by mid-February.
The yield on the 10-year Treasury remained steady at 4.43%, consistent with its late Wednesday position.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Kerem Gülen/Ideogram
