Stock Futures Drop Ahead of Jobs Report

Updated from 8 a.m. EDT

Premarket futures were pointing to a negative open for stocks in New York Friday as traders, concerned over the future of the economy, anticipated a key government report on the U.S. job market.

Futures for the S&P 500 were down 7.9 points at 1229 and were 8 points below fair value. Nasdaq futures were down 8 points at 1768 and were 6.5 points short of fair value.

On Thursday, the major indices swooned, each losing at least 3% as several data reports indicated the economy remains weak. A decline in commodity prices over the past week wasn't offering much relief from the gloom, and sellers dramatically outnumbered buyers on both the New York Stock Exchange and the Nasdaq.

Ahead of the new session, traders were bracing for the Labor Department's unemployment numbers for August. The monthly figure is an important barometer for many investors as they search for a clearer picture of where the slowed economy is headed.

Economists are expecting the jobless rate to remain at its July level of 5.7% and nonfarm payrolls to decline by 75,000, a wider loss than the prior month's drop of 51,000.

In company news, bond fund manager Pimco, part of Allianz (AZ Quote), named Mohamed El-Erian as chief executive. El-Erian replaces Bill Thompson, who retires at the end of the year.

Meanwhile, hedge fund Atticus Capital refuted rumors it is closing down. Earlier this week, fellow fund Ospraie Management shuttered its business after making bad bets on commodities.

Elsewhere, General Electric (GE Quote) said it would sell its warranty-management business to insurance company Assurant (AIZ Quote) for $140 million.