Here are the top news, trends and analysis that investors need to start their trading day:
1. Stock futures rise one day after the big rally on Wall Street
Traders work on the floor of the New York Stock Exchange (NYSE) on December 02, 2021 in New York City.
Spencer Platt | Getty Images
US stock futures rose on Friday after Labor Department data before the bell for November showed slower job growth and a significant failure compared to expectations. But at the same time, the unemployment rate in the country has fallen much more than expected. Investors are weighing lagging job numbers against rising cases of the Covid omicron variant, trying to see if the Fed will actually speed up monthly bond purchases.
The Dow Jones Industrial Average rose 617 points, or 1.8%, on Thursday even as more omicron cases were reported in the United States. The first US case was reported the day before the index shifted from 520 points to a loss of 460 points. The Dow Jones Industrial Average is down more than 1.8% on Tuesday after a brief respite on Monday. Major companies sank 2.5% in last Friday’s holiday briefing session after the discovery of an omicron in South Africa was revealed.
On Friday, DocuSign shares fell more than 30%, in the morning after issuing weak forward guidance. Tesla shares rose slightly as CEO Elon Musk exercised more options, bringing his recent stock sales to $10.9 billion. Didi Global shares fell nearly 10% after the Chinese carrier announced plans to delist from the New York Stock Exchange and pursue a listing in Hong Kong instead. The stock is down more than 45% from its IPO price in July.
2. November job growth fails, unemployment really drops
Signs for a job fair are seen on 5th Avenue after the release of the jobs report in New York, September 3, 2021.
Andrew Kelly | Reuters
The government said on Friday that the US economy created 210,000 non-farm jobs just in November. This was well below the 573,000 readings that had been expected. October was revised up to 546,000. However, last month’s unemployment rate fell sharply to 4.2%, a positive sign compared to the smaller drop to 4.5% that economists had expected. Average hourly earnings, a measure of wage inflation, rose 4.8% year over year in November. This was slightly below estimates. Earlier this week, Federal Reserve Chairman Jerome Powell said the central bank could speed up scaling back the $120 billion per month bond-purchasing program it has put in place to support the economy during the pandemic. Powell said the Fed will discuss the potential move at its December meeting.
3. FDA Prepares for Rapid Review of Omicron Vaccines and Drugs, Says The Wall Street Journal
Medical vials and syringe on display before the Food and Drug Administration (FDA) of the United States emblem. The US Food and Drug Administration has found a COVID-19 vaccine.
Buffalo Junchar | Light Rocket | Getty Images
The U.S. Food and Drug Administration is preparing for a rapid review of Omicron’s vaccines and treatments if needed, according to the Wall Street Journal, citing people familiar with the matter. The magazine also reported that the agency was meeting with drug makers to develop guidelines on the data that would be needed for rapid evaluation. The CEOs of Pfizer and Moderna told CNBC on November 29 that it will take about two weeks to gather enough data to determine the effect of omicron mutations on the effectiveness of current vaccines.
4. Five states in the US, including New York and California, confirm Omicron cases
A sign outside a hospital announcing a COVID-19 test on November 19, 2021 in New York City.
Spencer Platt | Getty Images
At least five US states – Minnesota, Colorado, New York, Hawaii and California – have confirmed cases of Omicron as scientists investigate whether the highly mutated strain is more contagious and dangerous. On Wednesday, California confirmed the first case of Omicron in the United States. Minnesota public health authorities on Thursday morning confirmed the second Omicron case in the United States, in a resident who recently returned from New York City. Thursday evening, New York confirmed five cases. New York Democratic Gov. Cathy Hochhol told residents that discovering multiple cases does not mean the state will return to the blanket lockdowns imposed during the start of the pandemic in March 2020.
5. Biden expected to sign short-term government spending bill
US President Joe Biden talks about supply chain issues in the South Courtroom of the Eisenhower Executive Office Building, next to the White House in Washington, DC on December 1, 2021.
Mandel Ngan | AFP | Getty Images
President Joe Biden is expected on Friday to sign the recently approved short-term government spending bill. The legislation, which was quickly passed by the House and Senate on Thursday, thwarts the government’s shutdown for now, and provides federal funding through February 18. While preventing one financial crisis, lawmakers still need to avoid another, and figure out how to do it. Increase the country’s debt ceiling to pay its bills before December 15. That’s when Treasury Secretary Janet Yellen said the cap would be reached. It’s been nearly two weeks since its initial forecast on December 3rd.
– Reuters contributed to this report. Follow all market movements like a pro CNBC PRO. Get the latest news on the epidemic with CNBC’s coronavirus coverage.