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Krispy Kreme, June Jobs, Unemployment Rate: 3 Things to Watch

Published 01/07/2021, 21:06
© Reuters
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By Dhirendra Tripathi

Investing.com -- Energy shined Thursday, pushing the S&P 500 to a new intraday high after the OPEC+ oil cartel postponed its meeting for a day after struggling to reach consensus on supply.   

OPEC+, which includes members of the Organization of the Petroleum Exporting Countries plus allies led by Russia, delayed its meeting to Friday after the United Arab Emirates couldn’t go along with the reported preliminary deal for a 500,000 barrel per day hike struck Thursday by Saudi Arabia and Russia.

Oil prices remained near their highest level since October 2018 as the prospect of higher output should be balanced by an undersupplied market amid robust demand.  

Positive news about the labor market also held up cyclical stocks – those that move in tandem with the economy, ahead of the government’s report on jobs for June. Otherwise, Friday’s U.S. session is bound to be quiet as people prepare to head out for the three day holiday weekend.

Here are three things that could affect markets tomorrow. 

1. Donut watch

Krispy Kreme Inc (NASDAQ:DNUT), the donut chain, began trading in New York on Thursday and moved 19% higher after an initial hiccup on the Nasdaq. The stock opened lower at $16.30 and then quickly rebounded. The company had priced its share at $17 apiece.

2. The jobs report

U.S. nonfarm payrolls are expected to increase by 700,000 in June, higher than the growth of 559,000 in the prior month. This is the first release of the data since the last time the Federal Reserve's policy making committee met.

3. Unemployment rate

The U.S. unemployment rate is expected to continue its slide in June, falling to 5.7% from 5.8% in May. It was 6.1% in April.

 

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