US pre-open: Stocks seen up as Meta, Amazon impress; payrolls eyed

US stocks were set for a firmer open on Friday as investors cheered solid results from Meta and Amazon and looked ahead to the release of the latest non-farm payrolls report.

At 1145 GMT, Dow Jones Industrial futures were up 0.1%, while S&P 500 and Nasdaq futures were up 0.6% and 1%, respectively.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "Meta has seen a remarkable share price jump, as it announced its first ever quarterly dividend and a hefty share buyback.

"The topping of estimates also came as a very welcome surprise - the advertising revenue landscape remains very lumpy and Meta’s navigating this well. The potency of its offering is clear to see, with advertising impressions rising by a fifth, and price increases are tapering to more customer-friendly levels. The returning of cash to shareholders is a bold and well-regarded move.

"It was also a good night for Amazon, which took a gamble when it hired swathes of extra seasonal workers over Christmas. Retail margins have been squashed in the past when demand failed to show up following over-zealous capacity ramp ups. The world’s largest retailer comfortably beat analyst expectations with quarterly revenue of $170bn."

On the macro front, investors were eyeing the payrolls report for January, which is due at 1330 GMT, along with the unemployment rate and average earnings.

Tickmill Group said: "The forecast for today's US non-farm payrolls suggests a rise of 200k in January, slightly higher than the consensus forecast of 185k. While this is a slight decrease from December's 216k, it still indicates solid job growth. Some analysts have mentioned the unusually cold weather in January as a potential downside risk to these forecasts. The unemployment rate is expected to remain at 3.7%, and the annual wage growth rate is anticipated to stay at 4.1%.

"Overall, the US labour market remains strong, supporting the case for the Fed to approach interest rates cautiously, as indicated by Chair Powell. Market expectations for a March rate cut by the Fed have slightly decreased, with a probability of about 1-in-3 at present. However, a rate cut in May is fully expected, with around 150bps of reductions anticipated by 2024."

Aside from Meta and Amazon, ExxonMobil and Chevron looked set for gains after better-than-expected fourth-quarter earnings.

On the downside, however, Apple fell ahead of the open after it reported disappointing sales in China.