May jobs report, debt ceiling bill clears fears over economy

Stock futures were up Friday due to a strong May jobs report and news late Thursday that the Senate passed the debt ceiling bill, clearing investor fears over both a US debt default and worries about a marked slowdown in the economy.

On Friday, the S&P 500 GSPC and Dow Jones Industrial Average DJI rose about 0.6% and Nasdaq future IXIC were up by closer to 0.4%.

The May jobs report, which will be released in mid-June, is due to be released tomorrow at 8:30 a.m. ET. ET, may help determine whether the Federal Reserve hikes interest rates at its next meeting in June.

The number of nonfarm payrolls for May is expected to increase by 195,000, while the unemployment rate is expected to tick up to 3.5%. The US economy added 253,000 nonfarm payroll jobs in April, and the unemployment rate fell to 3.4%.

As the Senate votes to approve a bill that will lift the U.S. debt ceiling for two more years, investors are worried about the potential impact of their debt ceiling fears. Easing debt ceiling worries led stocks to higher on Thursday, with all three major indexes closing in the green for the first day of June.

Lululemon LULU posted better-than-expected results on the earnings front and boosted its full-year revenue guidance. Lululemon now expects full-year revenue to be in a range of $9.44 billion to $9.51 billion. previous guidance had been for a range of $9.3 billion to $9.41 billion.

The company's strong momentum continues to be driven by product innovation, investments in growth demand creation, and the benefit of not being exposed to the wholesale channel, Wedbush Securities analyst Tom Nikic wrote in a note to clients on Friday.