Here are five things you must know for Friday, June 4:
1. — Stock Futures Edge Lower Ahead of Jobs Report
Stock futures were down slightly Friday as traders awaited key U.S. jobs data following an encouraging reading on unemployment.
Contracts linked to the Dow Jones Industrial Average declined 42 points, S&P 500 futures fell 2 points and Nasdaq futures were down 5 points.
The Labor Department on Friday will publish the nonfarm payrolls report for May. Economists surveyed by FactSet estimated that the U.S. added 650,000 jobs in May following April’s increase of a less-than-expected 266,000.
Investors have been closely watching for signs of inflation and indications of whether the Fed could put the brakes on the rebounding U.S. economy sooner than anticipated. A strong U.S. jobs report could further stoke those concerns.
Fed officials repeatedly have said it’s too early to withdraw support for an economy just beginning to rebound from the COVID-19 pandemic.
“The main concern in the markets, rightfully so, is inflation,” Cliff Hodge, chief investment officer for Cornerstone Wealth, told the Associated Press. “Data points are beginning to confirm the view that inflation is likely to be more sticky.”
Stocks finished down but off their lows Thursday after private payrolls in the U.S. in May jumped the most in nearly a year and weekly jobless claims fell to a pandemic low.
2. — Friday’s Calendar: Nonfarm Payrolls for May
The U.S. economic calendar Friday includes the U.S. nonfarm payrolls report for May at 8:30 a.m. ET. The unemployment rate last month is forecast at 5.9%, down from 6.1% in April.
The calendar also includes a speech from Federal Reserve Chairman Jerome Powell at 7 a.m. at the Green Swan 2021 Global Virtual Conference and Factory Orders for April at 10 a.m.
3. — Elon Musk Hints at a Breakup With Bitcoin
Bitcoin was down 5.82% to $36,820 following Musk’s tweet in which he wrote the hashtag #Bitcoin with a broken heart emoji. He also referenced lyrics from “In the End,” a song by Linkin Park.
It’s not the first time Musk has roiled the crypto 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 electric-vehicle company hadn’t sold any of its holdings of Bitcoin, clarifying an earlier ambiguous tweet that hinted that Tesla may have done so.
Bitcoin reached a record high of more than $64,000 in April. Despite wild gyrations in its price, Bitcoin remains up for the year by more than 25%.
4. — AMC Extends Losses After Share Sale
AMC Entertainment (AMC) – Get Report declined more than 5% in premarket trading, extending losses from the previous session following a share sale that collected $587 million for the struggling movie-theater chain that has become a favorite of the retail trading crowd.
The stock was down 5.59% in premarket trading Friday to $48.47. It closed with a loss of nearly 18% on Thursday but pared even more significant declines after AMC said it completed the equity sale.
AMC shares have risen 2,320% so far in 2021.
The stock sale Thursday came with a warning, however, from AMC, which was near bankruptcy just months ago.
“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” AMC said in a filing with the Securities and Exchange Commission.
“Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”
5. — Broadcom Issues Bullish Third-Quarter Forecast
Broadcom said it expects third-quarter revenue of about $6.75 billion, higher than expectations of $6.6 billion. In addition, the company estimated adjusted EBITDA would 60% of projected revenue, or about $4.05 billion, above estimates of $3.88 billion.
“Due to the strength in demand for semiconductors across our multiple end markets, we delivered 20% year-over-year
increase in semiconductor revenue,” said CEO Hock Tan.
“Our third-quarter outlook projects this year-over-year growth
to sustain, as we continue to see strong demand from service
providers and hypercloud.”
Jim Cramer and the Action Alerts PLUS team, which holds Broadcom in its portfolio, said the second quarter was a very solid one for the company, “as nearly every line item that we closely watch came in better than expected, and management’s forward outlook was stronger than anticipated too.
“Meanwhile, constraints within Broadcom’s supply chain seem to be improving, with Tan commenting that ‘hourly times have now stabilized’ with demand staying strong as ‘the volume of bookings we are experiencing today continues to grow,'” the AAP team added.
The stock was flat in premarket trading at $464.80.