Washington, D.C. – The U.S. economy added an impressive 272,000 jobs in May, significantly exceeding the projected 190,000 jobs according to Dow Jones consensus estimates. This unexpected surge in job growth has led to a decline in stock futures, indicating growing investor concerns about the Federal Reserve’s potential to cut rates later this year.
Stocks making significant moves before the bell include GameStop, which saw a 15% premarket decline after posting a surprise earnings report showing a 29% decrease in net sales. On the other hand, Lyft shares rose by over 3% following multiple analyst upgrades, and Vail Resorts experienced an 8% drop after disappointing quarterly results.
GameStop reported a 29% decline in sales for the first quarter, with net sales amounting to $881.8 million. Despite these results, shares dropped by more than 20% as traders awaited a livestream from meme trader “Roaring Kitty.”
European markets saw a marginal decrease after closing at a record high due to the European Central Bank’s decision to cut rates for the first time since 2019. The Stoxx 600 was down by 0.04% in early trading, with major bourses and most sectors in the red.
Nio, a Chinese EV company, experienced a 7% decline in shares despite announcing plans to expand to the Middle East. The company also shared its intentions to introduce its lowest-cost brand, Firefly, in the first half of the next year.
China’s May exports exceeded expectations by climbing 7.6%, compared to the 6% forecasted by economists. However, imports only grew by 1.8%, missing the expected 4.2% rise. This data reflects a slower pace of growth in new export orders for the fifth consecutive month.
In Japan, household spending rose by 0.5% year on year in April, marking the first increase since February 2023 but falling short of poll estimates. This data is significant as it coincides with the restart of many Japanese companies’ financial year and corporate changes.
Health-care payments software maker Waystar announced the pricing of its initial public offering, raising $968 million through the sale of 45 million shares priced at $21.50 each. The offering is expected to start trading on the Nasdaq under the symbol WAY on June 7.
In after-hours trading, Vail Resorts saw a more than 5% decline, DocuSign lost 6%, and Braze surged about 13% on better-than-expected first-quarter results. Stock futures opened flat, with Dow Jones Industrial Index futures inching higher by 13 points, S&P 500 futures, and Nasdaq 100 futures hovering around the flat line.