US stock futures traded mixed on Friday, as faltering factory activity in China and gloomy guidance from e-commerce giant Amazon.com Inc. put optimism on pause after S&P 500 registered its best month since 2015.
The S&P 500 futures were up 0.1 percent to $2,708.12, while Dow futures gained 0.2 percent to $25.029 and tech-heavy Nasdaq 100 futures slipped 0.02 percent to $6.913.12.
Amazon dropped 2.9 percent to $1,668.01, having shed 4.5 percent to $1,641.00 in pre-market trading after the e-commerce titan estimated quarterly revenue below analysts’ expectations, putting its record sales and profit during the holiday season in the shade.
Shares of Amazon, which have climbed about 14 percent this year, send Nasdaq futures lower.
Global Economic Slowdown
Most parts of the world saw factory activity grew at its weakest pace in years in January, further raising worries that trade tariffs, political uncertainty, and plummeting demand posed an increasing threat to world economic growth.
US President Donald Trump stated that he could meet Chinese President Xi Jinping soon to settle a comprehensive trade agreement ahead of the March 1 trade deadline.
The news was offset by concerns that the global impact of the trade war between the two countries is still in effect, with China’s purchasing managers’ index (PMI) contracting to 48.3, its second straight month of decline and the lowest reading since February 2016.
Investors are expecting that a trade deal between the world’s two largest economies could reduce some of the slowdown concerns.
US stock markets ended on a positive note last month after the Federal Reserve made a promise to be patient in hiking interest rates further this year and Trump’s announcement about meeting Xi soon to try to seal a trade agreement.
Data from the Labor Department showed on Friday that non-farm payrolls rose 304,000 jobs in January to mark as its highest since February 2018 and surpassing analysts’ expectations of 165,000.
The jobs report comes at a time hundreds of thousands of federal employees who were furloughed are back at work following the recent partial government shutdown.
The 35-day partial government shutdown, which ended last week, also had no discernible impact on job growth. The report came a couple days after the Fed signaled that its three-year rate increase campaign could be nearing its end due to growing headwinds to the economy.
Vice President of trading and derivatives Randy Frederick said the payroll number was significantly stronger than what was expected, so a lot more people are finding jobs.
Frederick added that there is a huge concern about the growth rates in China and this certainly eases some amount of concern domestically.
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