United States equity futures traded modestly lower on Thursday night (Friday AEST) as investors prepared for the release of the closely watched May nonfarm payrolls report, which is expected to provide fresh insight into the health of the labour market and the outlook for interest rates.
By 9:55 am AEST (11:55 pm GMT), Dow Jones futures were down 0.03%, S&P 500 futures had slipped 0.3%, and Nasdaq futures fell 0.7%.
The cautious tone followed a mixed session on Wall Street, where the Dow Jones Industrial Average surged 1.7% to a record closing high. The S&P 500 gained 0.4%, while the Nasdaq Composite edged 0.1% lower as investors rotated out of technology and semiconductor stocks and into healthcare, financial and consumer sectors.
In after-hours trading, several companies moved sharply following quarterly earnings reports and updated guidance.
Lululemon Athletica shares tumbled 11.1% after the athletic apparel retailer lowered its full-year earnings and revenue forecasts, citing ongoing business headwinds.
Despite the weaker outlook, the company reported first-quarter earnings per share (EPS) of $1.69, ahead of analyst expectations of $1.68. Revenue came in at $2.5 billion, exceeding forecasts of $2.43 billion.
Engineering and construction company Argan rallied 12.3% after posting stronger-than-expected quarterly results. The company reported EPS of $3.24, well above consensus estimates of $2.31, while revenue totalled $290.95 million compared with expectations of $256.03 million.
Electronic signature software provider Docusign fell 4.7% despite reporting earnings and revenue ahead of forecasts. Investors appeared disappointed by the company's second-quarter outlook, which projected revenue between $865 million and $869 million, broadly in line with the consensus estimate of $866 million.
Docusign reported EPS of $1.09 versus expectations of $0.99, while revenue reached $830.3 million compared with forecasts of $824.71 million.
Cloud software provider ServiceTitan surged 14.9% after raising its full-year guidance. The company now expects adjusted operating income between $142 million and $147 million.
Quarterly earnings per share came in at $0.37, comfortably ahead of expectations of $0.28, while revenue rose to $268.8 million, topping forecasts of $256.66 million.
Attention now turns to Friday's nonfarm payrolls report, one of the most significant economic releases of the month.
Markets expect the U.S. economy to have added 85,000 jobs in May, down from an average monthly gain of 150,000 across the previous two months.
The unemployment rate is forecast to remain unchanged at 4.3%, while investors will also closely monitor wage growth figures for signs of inflationary pressure.
