U.S. stock futures fell early in trading on Thursday, after the ADP national jobs report showed private payrolls jumped much more than expected in December.
Futures contracts linked to the S&P 500 (^GSPC(down 0.5%, while Dow Jones Industrial Average futures)^ DJI) decreased by about the same amount. Contracts on the technology-intensive Nasdaq Composite (^IXICfell 0.6%.
The decisions came as investors digested a slew of labor market data and eyed Fedspeak with central bankers. The ADP report showed private employment rose by around 235,000 jobs in December, well above a forecast of around 150,000.
The report was the latest to show a still tight labor market amid the Federal Reserve’s campaign to contain inflation. A measure wednesday vacancies found fell less than expected last month and remained high. The Labor Department’s monthly nonfarm payroll survey is due out Friday morning.
Scheduled speeches by Federal Reserve Chairs Raphael Bostic and James Bullard will also be closely watched on Thursday.
Meanwhile, Amazon (AMZN) shares rose 2% before market after CEO Andy Jassy said in a note late Wednesday that the company’s planned job cuts would affect at least 18,000 employees, far more than previously reported. previously indicated. Jassy’s memo came after the The Wall Street Journal reported the news.
The figure marks the largest workforce reduction by a technology company in recent months, as a growing number of names in the sector lay off workers to cut costs in more difficult market conditions. Amazon lost about $834 billion in market value in 2022.
Crypto-focused Silvergate Capital shares (IF) fell 29% in pre-open trading after The Wall Street Journal reported Thursday the bank was forced to sell assets to a large loss to cover $8.1 billion in withdrawals following the bankruptcy of FTX. The plunge comes after the stock rebounded 27% on Wednesday.
Elsewhere in crypto stocks, Coinbase (PIECE OF MONEY) shares fell 4% before the open following a downgrade from Cowen to Market Perform from Outperform, citing a “pretty steady decline” in trading volumes and the risk of likely regulatory action after FTX’s collapse .
“There is low visibility by stabilizing retail transaction volumes in 2023 after further deterioration in December,” the company said. “Potential SEC enforcement action is high after FTX with regulatory certainty unlikely through 2024.”
In other stock moves, T-Mobile shares (TMUS) rose slightly in extended trading after the mobile service provider reported fourth-quarter subscriber growth slightly above estimates. The company added 927,000 new phone customers during the period, compared to 921,000 analyst calls.
Johnson & Johnson (JNJ) consumer health company Kenvue filed on Wednesday to be listed as a separate company, marking the first notable filing of an initial public offering in the United States of the new year.
In other markets, oil prices rebounded after plunging nearly 10% in the past two days. West Texas Intermediate (WTI) crude futures, the US benchmark, rose 2% to just over $74 a barrel.
Stocks closed higher on Wednesday after a volatile session influenced by the reading of the Federal Reserve’s December meeting minutes and economic data showing it. job offers higher than expected and one decline in manufacturing activity for a second consecutive month.
Wednesday’s Fed minutes showed officials opposed to ‘unjustified’ easing financial conditions, even as they welcomed slowing inflation, and the need to maintain a “restrictive policy stance” until more promising data.
“The December meeting minutes show that FOMC members remain focused on current inflation and inflationary risks, with fear of excessive monetary policy receiving very little attention,” the FOMC said. chief economist of Pantheon Macroeconomics, Ian Shepherdson, in a note.
“Don’t expect them to soften their inflation line until it becomes clear that a serious shift in the data is afoot,” he added.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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