Airbnb and Cloudflare Earnings Boost Nasdaq Futures Ahead of Jobs Report

TLDR

• Dow futures fell Friday while Nasdaq and S&P 500 futures edged higher ahead of July jobs data
• Economists forecast 97,000 payrolls added and a 4.2% unemployment rate for July
• Airbnb surged 11% and Cloudflare jumped 15% on strong earnings beats
• Iran Strait of Hormuz deal hopes faded, pushing oil prices and bond yields higher
• Major indexes still on track for strong weekly gains despite Thursday’s selloff

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Wall Street steadied early Friday as investors waited for the July jobs report, a data print that could shape the Federal Reserve’s next move on interest rates.

Dow Jones Industrial Average futures dropped around 60 points, or 0.1%, while S&P 500 futures edged up 0.1% and Nasdaq 100 futures gained 0.4%.

The three major indexes had all fallen on Thursday, with the Dow snapping a five-day winning streak. Despite that, all three were still on track for solid weekly gains.

The S&P 500 was set to rise 2.9% for the week, the Dow was up 2.7%, and the Nasdaq Composite led with a 3.8% weekly gain. Tech shares drove much of that rebound, bouncing back from heavy losses in July.

Jobs Report in Focus

The July nonfarm payrolls report was the key event for markets on Friday. Economists expected about 97,000 jobs to have been added, with the unemployment rate holding at 4.2%.

Traders currently see the Fed’s next rate decision as a close call between a hike and a hold. The jobs report was expected to shift those odds one way or the other.

A stronger reading could raise the chances of a September rate hike and put pressure on the recent rally. A weaker number could give traders reason to keep buying.

The Fed’s July meeting showed more policymakers favoring a rate hike as inflation remains sticky. A strong labor market gives the central bank room to move in that direction.

Airbnb and Cloudflare Lead Earnings Gains

Two tech-related names stood out Friday morning after strong quarterly results.

Airbnb jumped 11% after beating Wall Street estimates and raising its annual outlook. The vacation rental company posted results for the June quarter that topped expectations.

Cloudflare surged 15% after beating on both revenue and earnings. The company benefited from rising demand for infrastructure tied to artificial intelligence.

Earlier in the week, results from SanDisk and Western Digital largely disappointed investors.

Iran Tensions Weigh on Sentiment

Markets had been lifted earlier in the week by reports that a U.S.-Iran deal to reopen the Strait of Hormuz was close. That optimism faded by the end of the week with no agreement announced.

Military tensions with Iran stayed elevated. Oil prices rebounded sharply on Thursday, adding to concerns about economic disruption.

Higher oil prices pushed bond yields up, putting pressure on equities heading into the weekend.