Stock futures moderately lower ahead of jobs data
NEW YORK — Stock futures were moderately lower Friday ahead of a key report on the nation’s employment.
Overseas, European markets fell modestly, while Asian markets were mixed ahead of the reading on jobs in the world’s largest economy.
In the U.S., the Labor Department’s report is expected to show job losses moderated in July as the worst recession since World War II eases. The slowdown in job cuts comes as companies are likely done with their largest cost-cutting initiatives that have helped offset declining sales and revenues.
Stocks had been rallying for most of the past five months as investors have been encouraged by signs the ongoing recession is winding down. Market gains have slowed in recent days leading up to the employment report as investors try to determine how far the economy has bounced back from its bottom.
The data is expected to say job losses slowed in July to a pace of around 320,000. Employers shed 467,000 jobs in June.
The unemployment rate is expected to rise to 9.6 percent from 9.5 percent in June. It is widely anticipated the unemployment rate, which tends to lag a recovery in the economy, will eventually eclipse 10 percent. Employers typically do not start adding jobs until they are fully confident an economic recovery will last.
The report is due out at 8:30 a.m. EDT.
Ahead of the report, Dow Jones industrial average futures fell 24, or 0.3 percent, to 9,205. Standard & Poor’s 500 index futures declined 2.10, or 0.2 percent, to 992.80, while Nasdaq 100 index futures dropped 2.75, or 0.2 percent, to 1,598.50.
In corporate news, embattled insurer American International Group Inc. posted its first quarterly profit since 2007. The insurance giant, which is now majority owned by the government, reported a profit of $1.82 billion in the second quarter as some of its businesses stabilized.
The government has provided AIG with a loan package worth up to $182.5 billion and received an 80 percent stake in the firm after bailing it out at the peak of the credit crisis last fall.
Its shares jumped 71 cents, or 3.2 percent, to $23.24 in premarket trading.
Investors were tentative on Thursday ahead of the monthly unemployment report. The Dow fell 25 points and other major indexes posted modest declines. The market has put the latest leg of its rally on hold this week after the Dow surged more than 13 percent over the previous four weeks on a bevy better-than-expected earnings reports.
Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was flat at 3.76 percent compared with late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.16 percent late Thursday.
The dollar was mostly higher against other major currencies, while gold prices fell.
Overseas, Japan’s Nikkei stock average rose 0.2 percent. In afternoon trading, Britain’s FTSE 100 declined 1.2 percent, Germany’s DAX index fell 0.6 percent, and France’s CAC-40 dropped 0.8 percent.
Related News
Stock futures point to a lower open as investors await key unemployment dataOctober 2nd, 2009 Stock futures pull back ahead unemployment dataStocks headed toward a lower open Friday as investors await the government's September jobs report. Stock futures were down after the market began the fourth quarter with its worst drop in three months, sending the Dow Jones industrials down 203 points Thursday.
Stock futures point to a lower open as investors await housing, consumer dataSeptember 30th, 2009 Stock futures retreat ahead housing, consumer dataThe stock market headed for a modestly lower open Tuesday as investors await the latest reading on consumer confidence. Stock futures fell slightly, a pullback to be expected after the market shot higher Monday and propelled the Dow Jones industrials up more than 120 points.
US stock futures little changed as investors await data on jobs, housingSeptember 24th, 2009 Stock futures steady ahead of jobs, housing dataNEW YORK — Stock futures are little changed as investors wait for more clues on how the economy is faring. The quiet trading Thursday follows declines in markets overseas that came after the Federal Reserve left interest rates unchanged and said the pace of economic activity has improved.
Stock futures modestly lower ahead of retail sales, inflation, business inventories dataSeptember 15th, 2009 Stock futures point toward modestly lower openNEW YORK — Stock futures are modestly lower Tuesday as investors await three reports that could provide insight into any potential economic recovery. The market has risen sharply throughout the spring and summer on hopes of a recovery.
Stocks futures slip as investors' continue search for economic recovery signsSeptember 10th, 2009 Stock index futures point to lower openThe stock market appeared headed for a modestly lower open Thursday as investors looked for more evidence of an economic recovery. U.S. stock futures slipped even as European markets moved lower after prices surged in Asia.
Stock futures point toward higher opening as investors wait to hear from Fed chairmanAugust 21st, 2009 Stock futures point to modestly higher openingNEW YORK — Stock futures pointed to a modestly higher open as investors try to shake a two-day losing streak. Overseas markets mostly fell.
Stock futures modestly lower ahead of upcoming Federal Reserve meeting, retailer earningsAugust 10th, 2009 Stock futures modestly lower ahead of openingNEW YORK —Stock futures were modestly lower early Monday as investors turn their attention to an upcoming Federal Reserve Board meeting and earnings from some of the nation's largest retailers. Overseas, Asian markets rose amid a positive report on Japanese machinery orders, a key indicator of corporate capital spending.
US stock futures mixed in narrow range as investors await reports on jobs, retail salesAugust 6th, 2009 Futures mixed ahead of jobs, retail sales reportsNEW YORK — U.S. stock futures are mixed in a narrow range as investors refrain from making big bets ahead of reports on retail sales and the labor market.
Stocks futures point to lower opening as investors prepare for crush of earningsJuly 13th, 2009 Stocks futures lower ahead of busy earnings weekNEW YORK — Stock futures are lower as investors brace for a crush of earnings reports this week, including key readings from the banking sector. Overseas, Asian markets tumbled Monfay, but European stocks have posted only modest losses.
Stock futures point to lower opening as global markets rise, investors await earnings seasonJuly 7th, 2009 Stock futures point to lower Wall Street openingThe stock market headed toward a modestly lower start Wednesday as investors wait for aluminum maker Alcoa Inc. to give some guidance about the economy.
Stock futures point to flat opening as global markets rise, investors await earnings seasonJuly 7th, 2009 Stock futures point to quiet Wall Street openingThe stock market headed toward a modestly higher start Wednesday as investors wait for aluminum maker Alcoa Inc. to give some guidance about the economy.
Stock futures point to lower opening as investors await monthly unemployment reportJuly 2nd, 2009 Stock futures lower ahead of jobs reportNEW YORK — Worries about rising unemployment have stock market investors on edge. Stock futures fell ahead of the June unemployment report set for release before the market opens Thursday.
Wall Street heads for higher open as investors await jobs data, retail sales reportsJune 4th, 2009 US stock futures point higher ahead of jobs dataNEW YORK — Stock futures are indicating a higher opening for the U.S. markets as investors await sales reports from retailers and data on the labor market.
Stock futures edge higher after big gains, investors await economic data, earnings reportsMay 5th, 2009 Wall Street appears ready to extend big gainsNEW YORK — U.S. stock futures are edging higher as investors await a reading on the services sector and a bevy of earnings reports for further confirmation that the economy is improving.
Stocks point to flat open as investors await details on government 'stress tests' for banksApril 24th, 2009 Stocks signal flat open as focus turns to banksNEW YORK — Stock futures are little changed as investors await details on how the government is evaluating the health of the nation's largest banks. Treasury Secretary Timothy Geithner is expected on Friday to outline the methodology for the "stress tests" that regulators have given to 19 of the largest U.S.
Loading ...