Full Market Coverage HereMarket Overview: Indexes Poised for Weekly Gains Despite Mixed Session
Stock futures are showing modest gains early Thursday, June 5, 2025, as investors prepare for a crucial jobs report due Friday. The Dow Jones Industrial Average futures edged up 0.1% after snapping a four-day winning streak in the previous session. S&P 500 futures and Nasdaq-100 futures also gained 0.1% in premarket trading.
Wednesday’s session ended mixed, with the Dow Jones closing at 42,456.03, down 0.15%, while the Nasdaq Composite rose to 19,460.49, up 0.32%, and the S&P 500 finished at 5,971.92, up 0.03%.
Technology Sector Leads Market Gains
The technology sector continues to power market performance, up 15.27% as the top-performing sector on the S&P 500. Other strong sectors include Communication Services, up 11.49%, and Consumer Discretionary, up 8.41%.
Among notable tech performers, Meta (META) gained 3.14%, Netflix (NFLX) rose 1.69%, and Alibaba (BABA) jumped 3.91% in Wednesday’s session.
Economic Concerns: Jobs Data in Focus
Investors remain cautious following Wednesday’s private sector payrolls report, which showed just 37,000 jobs added in May—significantly below the Dow Jones forecast of 110,000. This disappointing figure has raised concerns about a softening job market and its potential impact on the broader economy.
Thursday’s weekly jobless claims data will be closely watched, but the main event will be Friday’s comprehensive payrolls report. Market participants hope this data will provide clearer signals about the labor market’s health and potential implications for Federal Reserve policy.
The CBOE Volatility Index, often referred to as the market’s “fear gauge,” sits at 17.61, down 0.08%, indicating relatively stable investor sentiment despite economic uncertainties.
Tariff Concerns Linger
While market sentiment has improved, investors remain wary about the potential impact of the Trump administration’s tariffs on corporate profits in the coming quarters.
“The impact of tariffs is still going to be substantial in the second and maybe the third quarter as well. The surprise so far seems to be we’re not getting that much inflationary pressure,” noted Ed Yardeni, Yardeni Research president. “I think we got a couple of quarters where at least on the short-term basis, tariffs are going to hurt the profits.”
Earnings Watch: Key Reports Due Today
Several companies are scheduled to report earnings before the market opens on Thursday, potentially influencing sector performance:
Ciena Corporation (CIEN) is expected to report quarterly earnings of $0.30 per share, representing a 500% increase compared to the same quarter last year.
Toro Company (TTC) is forecast to report earnings of $1.38 per share, a slight decrease of 1.43% year-over-year.
Victoria’s Secret & Co. (VSCO) is anticipated to report earnings of $0.09 per share, down 25% from the same period last year.
After the closing bell, several high-profile companies will report, including Broadcom (AVGO), with expected earnings of $1.57 per share on revenue of $14.97 billion, and Lululemon Athletica (LULU), projected to report earnings of $2.59 per share on revenue of $2.37 billion.
Stocks to Watch
Top Gainers: Wednesday’s session saw strong performances from FMC (+4.99%), Albemarle (+4.52%), and DR Horton (+4.43%) on the S&P 500.
Top Losers: Notable decliners included Chevron (CVX) down 1.63%, Travelers Companies (TRV) down 1.59%, and Verizon (VZ) down 1.37% on the Dow Jones.
Analyst Actions: Jefferies downgraded Chewy (CHWY) to hold from buy, though it raised its price target by $2 to $43. The firm noted that while Chewy shares are up 41% this year, the current valuation appears to have priced in most positive factors.
Looking Ahead: Market Catalysts
As we move toward the end of the week, investors will be closely monitoring Friday’s comprehensive jobs report for insights into the labor market’s health. Additionally, ongoing discussions about tariff impacts and their potential effects on corporate earnings will continue to influence market sentiment.
The technology sector’s performance remains crucial for overall market direction, with Communication Services and Consumer Discretionary sectors also playing significant roles in the current market environment.
With major indexes poised for weekly gains despite mixed signals, market participants will be watching for clarity on economic conditions and policy directions that could shape trading in the weeks ahead.