Still, investors are making money out of stocks, with $9.4 billion outflows this week, the fourth-largest exit of the year, according to Bank of America data.
That puts a lot of emphasis on today’s August salary report, especially with regard to wages, as investors look to set the Fed’s ambitions between now and the end of the year.
The pace of overall job growth is likely to slow from July’s scorching 528,000, analysts estimate, with Street forecasts hovering between 285,000 and 300,000 for the headline, a gain that would mark 20 consecutive months of hiring growth.
However, with the July JOLTs report showing large increases in unfilled positions, which stood at 11.2 million last month, and weekly claims for new unemployment benefits are falling, investors worry that average hourly wages will have to rise sharply to To lure Americans back into the workforce.
Economists expect average hourly earnings to rise 0.4% month-on-month and 5.3% year-on-year, with a faster-than-expected reading likely to fuel bets on a third straight rate hike of 75 basis points from the Fed later this month in Washington. .
On Wall Street, futures contracts linked to the S&P 500 point to a gain of 2 points on opening, while those linked to the Dow Jones Industrial Average are up 12 points. Futures pegged to the tech-focused Nasdaq point to a 7-point dip
Stocks on the move include Lululemon Athletica
(which rose 9.75% after the casual and sportswear group delivered stronger-than-expected second-quarter results and raised its full-year earnings forecast. LULU)
( was also higher, up 2.2%, following the chipmaker’s better-than-expected results in the third quarter and a robust near-term outlook. AVGO)
(meanwhile, rose 0.1% after it named Laxman Narasimhan, the former head of brand giant Reckitt, as CEO of the world’s largest coffee chain. SBUX)
Overseas markets sparked new China lockdowns — including in Shenzen’s tech hub — and threats of foreign exchange intervention from Japan, as the yen plunges to a 24-year low against the dollar, pushing gains for equities in the United States. the region was depressed, with the MSCI ex-Japan benchmark falling 0.56% at the close of trading.
In Europe, shares were 0.5% higher in early trading in Frankfurt, boosted by gains in the banking sector, amid reports that Credit Suisse plans to cut about 5,000 jobs from its global workforce and that the Fed is cutting its ten HSBC’s year-long surveillance ends after 2012’s record $1.92 billion money laundering fine.