By Anora Mahmudova and Barbara Kollmeyer, MarketWatch 321,000
jobs added in November, unemployment rate at 5.8%
NEW YORK (MarketWatch) -- U.S. stock futures were headed toward
a higher open Friday, following a surprisingly strong employment
report.
But futures initial swing higher after the report, and
subsequent pullback later, implies that investors are still
digesting whether the good jobs data means the Federal Reserve will
move quickly to raise rates.
The blowout report showing that employers added 321,000 jobs in
November beating the consensus number by 90,000, while unemployment
rates remained steady at 5.8%, offers further signs that the U.S.
economy is improving.
Strong jobs numbers along with improving wage growth put
pressure on the Federal Reserve to start raising rates sooner and
faster. Investors will be watching the outcome of the FOMC meeting
on Dec. 16-17 closely for any hints on the timing of rate
hikes.
Futures for the Dow Jones Industrial Average (DJZ4) rose 13
points to 17,905, while S&P 500 futures (SPZ4) ticked down 2
points to 2,070. Futures for the Nasdaq-100 index (NDZ4) fell 2
points to 4,312.
U.S. stocks retreated from record highs on Thursday, showing the
typical caution ahead of jobs data. Intraday records were hit after
reports that the European Central Bank may deliver on stimulus
after all, but those faded in a choppy day of trade. The S&P
500 index (SPX) lost 0.1%, along with the Dow industrials (DJI).
For the week, those indexes are up just 0.2% and 0.4%,
respectively. 10 biggest risks to the stock market in 2015
The U.S. added 321,000 jobs in November to mark the biggest gain
since Jan 2012, and wage growth also accelerated, in one of the
strongest employment reports since the Great Recession ended more
than five years ago.
Economists polled by MarketWatch had expected a gain of 235,000
nonfarm jobs. Hiring was also revised up by a combined 44,000 in
the prior two months, the Labor Department said Friday.
It is all about the wages: Average hourly wages jumped 9 cents,
or 0.4%, after two weak readings, although the 12-month increase
was little changed at 2.1%. Year over year increases have stuck to
a tight range of 1.9% to 2.2% since 2012.
Also out at the same time, the trade deficit for October, with
factory orders coming at 10 a.m. Eastern. Consumer credit will be
released at 3 p.m. Eastern.
Stocks to watch: There is ust one company was on the earnings
calendar Friday: Discount retailer Big Lots Inc.(BIG) posted a
third straight quarter of same-store sales growth, as a narrowing
loss led the company to raise the top end of guidance for the
current quarter.(BIG)
Dollar Tree Inc. (DLTR) may be active after the company unveiled
a list of concerns from the Federal Trade Commission over its
planned merger with Family Dollar Stores Inc (FDO) . The FTC may
require divestitures of stores, although they will not exceed the
number already mentioned in the merger agreement. The regulator
also expressed concerns about pricing rules.
Shares of Gap Inc.(GPS) may add to gains made late Thursday
after the retailer said November comparable sales were up 6% versus
the same month a year ago.
Gun maker Smith & Wesson Holding Corp.(SWB) could extend a
late-session slide after reporting weaker results.
Overseas markets: While the European Central Bank gave no hints
at Thursday's meeting about future stimulus, markets were convinced
otherwise, with European stocks up 1%. That came even as the
Bundesbank cut its German growth forecasts for this year and the
next two. The FTSE 100 was up slightly.
Chinese trading volume hit a record, with the Shanghai Composite
Index closing up 1.3% in a wild day of trading. The index has
gained nearly 10% this week. The Nikkei 225 index rose just 0.2%,
but supported the dollar, which stayed above the key Yen120
level.
Oil prices continued to fall, with crude (CLF5) hovering around
$66 a barrel and Brent under $70 a barrel after Saudi Arabia cut
prices for U.S. and Asia oil, and analysts are waiting to see if
other OPEC nations will follow. Gold prices(GCG5) fell 1.4%.
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