US stock futures held steady on Friday as investors took a cautious approach ahead of the crucial November jobs report, which could significantly impact the Federal Reserve's decision on interest rates in December. The nonfarm payrolls report is expected to show a gain of 200,000 jobs, with weaker-than-anticipated data potentially strengthening expectations for a rate cut. Markets are currently pricing in a 72% chance of a 25 basis point reduction this month, up from 66.5% a week earlier. In after-hours trading, shares of Ulta Beauty surged more than 12% after the company reported better-than-expected earnings and revenue for the third quarter. Similarly, software companies GitLab and DocuSign saw their stocks rise 7% and 14%, respectively, following strong quarterly results. On Thursday, the broader market closed lower, with the Dow dropping 0.55%, the S&P 500 falling 0.19%, and the Nasdaq Composite slipping 0.17%. The materials, industrials, and healthcare sectors led the declines.
The DAX was up 0.3% to trade around the 20400 level on Friday, extending gains for a 7th straight session and on track to break a new record closing level. Traders await the key jobs report for the US and continue to monitor the political situation in France, with President Macron vowing to appoint a new Prime Minister in the coming days. Bayer (3.6%), Henkel (2.6%) and Airbus (1.7%) were among the top performers and the auto sector was also in the green, namely BMW (2.4%), VW (1.9%), Porsche (1.5%) and Mercedes-Benz (1.2%). On the other hand, Siemens Healthineers (-1.4%) and Siemens Energy (-1%) were among the biggest losers. On the week, the DAX is up 0.4%. The benchmark has shown remarkable resilience, achieving a roughly 20% year-to-date gain despite economic challenges and domestic political concerns. This strength stems from its globally focused companies benefiting from international revenue streams and the weaker euro, which boosts export competitiveness.
