Stock index futures are higher Thursday after two losing sessions.
Nasdaq 100 futures (NDX:IND) +0.6%, S&P futures (SPX) +0.4% and Dow futures (INDU) +0.4% are gaining.
The market finished in the red yesterday, although off the lows of the day, with some jitters after JPMorgan CEO Jamie Dimon warned of an economic hurricane. But JPMorgan strategist Marko Kolanovic isn’t on board with his boss’ assesment, saying that there will be no recession and the late-May stock rally will be echoed in strength later this year.
“Despite many macro commentators confusing equity market volatility with business cycle risk, the data has consistently refuted the near-term recession narrative,” MKM’s Michael Darda wrote.
“Once again, we need to unshackle ourselves from the Pavlovian reaction function of the last cycle in which rates of change in macro momentum indicators were closely associated with risk-on/risk-off events with any sustained tightening in financial conditions unwelcome by the central bank (so-called Fed Put),” Darda said. “That’s the playbook when there is no (or low) growth, no (or low) inflation, and a Fed that is failing to the downside (not the upside) on its inflation target. We have argued repeatedly for more than a year: market commentators analyzing the current backdrop through the prism of the 2009-2019 cycle are, in a phrase, ‘doing it wrong.'”
Employment figures dominate this morning’s economic indicators a day ahead of the May payrolls report.
Before the bell, the ADP May private payrolls numbers come out, with economists predicting a rise of 300K. ADP’s figures tend to be volatile.
Weekly initial jobless claims are forecast to be steady at 210K.
Crude oil is down about 2% ahead of the OPEC meeting.
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