Traders work on the floor of the New York Stock Exchange.
Stock futures ticked higher Wednesday night as investors look ahead to September’s payrolls report due later this week.
Futures tied to the Dow Jones Industrial Average added 40 points, or less than 0.1%. S&P 500 futures advanced 0.1%, while Nasdaq 100 futures climbed about 0.2%.
In after-hours trading, denim maker Levi Strauss plunged nearly 10% after delivering mixed results for the fiscal third quarter. The company also announced that it’s considering a sale of its Dockers business, which is dragging down the overall business.
October trading is off to a rough start this month as escalating tensions in the Middle East dampen investors’ enthusiasm. Stocks tumbled on Tuesday after Iran launched a missile attack on Israel. Investors are preparing for further uncertainty as Israel starts a ground operation into Lebanon.
The three major U.S. indexes ended Wednesday slightly above the flatline. The S&P 500 added just 0.01%, while the tech-heavy Nasdaq Composite rose 0.08%. The Dow Jones Industrial Average added roughly 39 points, or 0.09%.
Private sector hiring was better than expected in September, according to data from ADP issued Wednesday.
Further labor market data awaits investors on Thursday, with the release of initial jobless claims. The main event for traders — and the Federal Reserve as it has embarked on a rate-cutting cycle — is September’s payrolls report, due on Friday morning.
“While the stock market is grappling with a variety of worries—including escalating tensions in the Middle East, a port strike and election uncertainty — liquidity is key and there is plenty of it now that the Fed has started to cut interest rates … that means that markets can continue to grind higher,” said Mary Ann Bartels, chief investment strategist at Sanctuary Wealth.
“Embrace October’s volatility, as there is still plenty of fuel left in this bull market,” she added.
Levi Strauss shares plummet in after-hours trading, company weighs Dockers sale
Shares of Levi Strauss & Co fell more than 9.5% in extended trading Wednesday after the jeans maker reported that its overall business is being weighed down by its Dockers brand. The company announced it’s now considering selling off the brand.
Levi’s delivered mixed quarterly results, posting adjusted earnings of 33 cents per share on $1.52 billion in revenue. Analysts polled by LSEG, meanwhile, called for 31 cents per share in earnings, excluding items, on $1.55 billion in revenue. The company also trimmed its guidance.
Sales at Levi’s brand were up 5% during its fiscal third quarter, but its overall revenue came in flat. Dockers saw its sales plunge 15% during the quarter.
For more on Levi’s latest quarterly earnings, read here.
— Pia Singh, Gabrielle Fonrouge
