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Wall Street Set to Open Higher, US Unemployment Rate Falls to 6.3% in January

· 02/05/2021 04:33

09:20 AM EST, 02/05/2021 (MT Newswires) -- US stocks were set for another round of gains Friday, a day after the S&P 500 and the Nasdaq Composite surpassed records set in late January, with traders evaluating key readings in the US labor market.

Dow Jones Industrial Average futures rose 129 points or 0.4%, S&P futures increased 15.3 points or 0.4%, and Nasdaq-100 futures gained 33 points or 0.2%.

Oil prices gained, with front-month global benchmarks Brent crude up about 0.5% and US West Texas Intermediate crude up around 1.3%, amid major producers' commitment to agreed output cuts and the continued rollout of COVID-19 vaccines.

At 8:30 am ET, data showed a 49,000 rebound in nonfarm payrolls for January following a 140,000 slump in the previous month and well below the 100,000 increase seen by forecasters. The unemployment rate fell to 6.3% in January from 6.7% in December. The US trade deficit, meanwhile, narrowed to $66.6 billion in December from $68.1 billion previous, a smaller narrowing than the $65.7 billion gap expected, according to Bloomberg data.

In other world markets, Japan's Nikkei closed 1.5% higher, Hong Kong's Hang Seng closed 0.6% higher, and China's Shanghai Composite closed 0.2% lower. Meanwhile, UK's FTSE 100 fell 0.1% and Germany's DAX index gained 0.2% in Europe's early afternoon session.

On the winning side, Teradata (TDC) shares surged 44% after the company posted a higher Q4 adjusted profit despite lower revenue. Magnite (MGNI) shares increased 25% after the company agreed to buy SpotX in a $1.17 billion deal. Berry Global (BERY) shares gained 6% after the company doubled its fiscal Q1 profit per share, while revenues increased.

On the losing side, Document Security (DSS) shares slumped 30% after the company priced a $34.5 million stock offering. Unity Software (U) shares fell 12% even after the company reported a narrower Q4 adjusted loss on higher revenue.