What's moving markets today: June 7, 2019
Stocks are climbing this morning after a jobs report that disappointed.
Market expectations for a near-term interest rate cut by the Federal Reserve to boost the economy have been growing, and the jobs data make a cut even more likely.
"While we were expecting jobs growth to slow down this time, few could have predicted such weak payroll numbers. The poor reading only cements market expectations for Fed rate cuts ahead," wrote ING economists James Smith and Carlo Cocuzzo in a note.
Barnes & Noble (BKS) spiked 11% at the open after it confirmed it was being taken private.
The bookseller said Friday it is being bought by a fund run by private equity firm Elliott Management for $683 million. The same company recently bought UK book store chain Waterstones.
Our Paul R. La Monica writes about the trouble Barnes & Noble is having:
The company's Nook e-reader device was also a flop, never catching on in the way that Amazon's Kindle did. And a spin-off of the company's campus book stores into the separately traded Barnes & Noble Education (BNED) in 2015 failed to get the more focused and smaller Barnes & Noble back on track either.
OPEC could be nearing a deal that could help support battered oil prices.
Khalid al-Falih, Saudi Arabia's energy minister, said on Friday that OPEC is close to agreeing to extend production cuts, Reuters reported. Those cuts, led by Saudi Arabia, are due to expire at the end of June.
However, the Saudi official cautioned that more time could be needed to convince non-OPEC allies such as Russia to extend the agreement.
That news initially lifted US oil prices, which surged as much as 2.4% to $53.83 a barrel early on Friday.
However, most of those gains vanished, with crude recently trading roughly flat on the day at $52.64 a barrel.
The oil market has been slammed in recent weeks by economic worries. Those concerns were not helped by Friday's jobs report, which showed that payroll growth slowed sharply to 75,000 in May.
US oil plunged back into a bear market -- its second in seven months -- on Wednesday following a report that revealed a spike in crude inventories.
US stocks kicked the day off higher on Friday despite a jobs report with a lower-than-expected headline number. 75,000 jobs were added in May, compared with the 185,000 consensus forecast from Refinitiv. Stock futures pares their gains after the report came out but then recovered.
All three indexes are on track to finish the week higher. The Dow is looking to snap a six week losing streak, while the S&P and Nasdaq had previously been down for four weeks in a row.
CNN Business' Christine Romans said the slowdown in job growth for May might be because of tariffs, which could be "denting confidence."
Last year, the US economy added 223,000 net jobs each month. That's well above the 164,000 jobs per month the economy is adding in 2019.
Romans points out the May number is even smaller, with 75,000 jobs being added. That was below expectations.
"Something happened there with business confidence and that stalled business hiring," she said.
Watch her full analysis from CNN Newsroom below.
Editor's note: This post has been updated.
The US economy added only 75,000 jobs in May, a surprisingly low number that was well below what experts had predicted.
Meanwhile, the unemployment rate remained at 3.6%, meaning that joblessness is still hovering near a half-century low.
The report supports suspicions that the labor market is finally slowing down from its blistering pace in 2018, with revisions to the past two months subtracting 75,000 jobs. Employers have added 164,000 jobs per month on average in 2019, compared with 223,000 jobs per month last year.
US stock futures cut back some of their gains after the release of the jobs report.
The US economy added75,000 jobs in May, compared with 180,000 expected. The unemployment rate remained unchanged at 3.6%.
Dow futures were flat, while futures for the S&P 500 and Nasdaq were both up 0.1%.