Stock market today: S&P 500, Nasdaq futures slide ahead of May jobs report

Lululemon stock (LULU) tumbled more than 10% in premarket trading on Friday after reporting quarterly results after the bell Thursday. The apparel company cut its second quarter and full-year financial outlooks, disappointing Wall Street.

Yahoo Finance’s Brooke DiPalma reports:

Lululemon’s incoming CEO Heidi O’Neill has her work cut out for her after the company slashed its full-year revenue outlook and reported weaker-than-expected second quarter earnings guidance.

For the second quarter of 2026, Lululemon expects net revenue to be in the range of $2.45 billion to $2.48 billion, while Wall Street was looking for $2.6 billion. Adjusted earnings are expected to be in the range of $1.76 to $1.81, lower than the Street’s forecast of $2.69.

“More recently, we have been navigating headwinds that have led us to adjust our outlook for the full year,” interim co-CEO and CFO Meghan Frank told investors in the earnings release. Frank added that the company is taking “additional actions to reposition where needed and further strengthen our product engine.”

For the full year, the company cut its revenue outlook to $11 billion to $11.15 billion, down from the previously expected range of $11.35 billion to $11.5 billion. The guidance for adjusted earnings also came in lower and is now seen in the range of $10.95 to $11.15, compared with previous expectations of $12.10 to $12.30.

Read more here.

The government’s closely watched jobs report will be out at 8:30 a.m. ET, and investors will be watching the numbers for additional signs of stability in the labor market.

Yahoo Finance’s Emma Ockerman previews what to expect when the May jobs report lands:

Payrolls are expected to have grown by 85,000 in May, while the unemployment rate is seen remaining flat at 4.3%, according to estimates from economists surveyed by Bloomberg. If their prediction holds, the US will have added positions for three consecutive months, a feat the job market hasn’t managed since it began whipsawing last summer.

Data on private payroll growth from ADP already showed some strength for May: Private employers added 122,000 jobs for the month, with hiring taking place across eight of the 10 supersectors ADP tracks. A month earlier, job openings soared to 7.62 million, a sharp increase from March.

Still, hiring declined in April, federal government data showed, and the increase in openings was concentrated in the professional and business services sector. The Federal Reserve’s Beige Book for May, released Wednesday, also noted that “employment showed little to no change” in 11 of the Fed’s 12 districts.

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Bloomberg reports:

S&P Dow Jones Indices will keep its existing eligibility requirements for main benchmarks like the S&P 500 Index, rejecting proposals that would have made it faster for mega-cap companies such as Elon Musk’s SpaceX to gain rapid entry into the benchmark after going public.

The index provider in a press release Thursday said it will not shorten the 12-month seasoning period for newly public companies it currently has or waive existing profitability and public-float requirements based on a company’s size, diverging from a broader industry shift embraced by rivals Nasdaq Inc. and FTSE Russell.

The decision arrives as Wall Street grapples with a new reality: some companies are reaching unprecedented sizes before they ever enter public markets. The consultation, launched earlier this year, effectively asked whether index rules written for a different era should bend to accommodate companies that now arrive at a scale once reserved for mature blue chips in what has become known as the “fast entry” in industry parlance.

The push for quicker inclusion has raised concerns among some investors who say rules around profitability, float and trading history exist precisely to prevent benchmarks from chasing hype. Furthermore, adding IPOs too quickly, they say, could expose passive funds to greater volatility and force them to buy shares before reliable market pricing is fully established.

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Bloomberg reports:

Oil steadied after its first decline this week, as optimism over US-Iran peace talks weighed against uncertainty surrounding a ceasefire deal between Israel and Lebanon.

Brent (BZ=F) traded around $95 a barrel after falling 2.8% on Thursday, while West Texas Intermediate (CL=F) was near $93. President Donald Trump said that talks with Iran were going well, despite Tehran-backed Hezbollah rejecting a US-brokered ceasefire deal between Israel and Lebanon.

WTI has gained more than 6% this week after uncertainty over the progress of the negotiations eroded some of the earlier optimism for a deal that would lead to a resumption of oil flows through the strait — which carries about a fifth of the world’s crude and liquefied natural gas in peacetime. Futures are still down about a fifth since early April — when the US and Tehran agreed to a ceasefire that ended more than five weeks of fighting.

There was no sign of progress in talks between Tehran and Washington, with Israel’s continued military strikes in Lebanon becoming a major sticking point.

Read more here.