Stock Futures Hold Ground After Jobs Report

Updated from 7:03 a.m. EST

NEW YORK -- Stock futures in New York had a muted reaction immediately following the government's latest employment data, as investors began to sort through what the loss of another half-million jobs would mean for an economy that's been in a recession for more than year.

Futures on the S&P 500 were about a point better than fair value, while Nasdaq 100 futures were 5 points below fair value.

Earlier, futures had been a bit weaker ahead of the jobs data. According to the Labor Department, the U.S. lost 524,000 jobs in December, right in line with estimates. The unemployment rate, however, was worse than expected, rising to 7.2%.

A month ago, the government's report showed unemployment was far higher than expected, which sent stocks sharply lower at the open. But investors eventually shrugged off the report as simply another sign the economy remained weak and stocks finished the day higher.

Investors also are awaiting a reading Friday on November wholesale inventory levels. Inventories likely dropped by 0.8% in November, compared with a 1.1% decline in October, according to Wall Street economists.

Economists are worried that big cutbacks in inventories will translate into further reductions in production and more job layoffs. The Commerce Department is scheduled to release the report at 10 a.m. EST.

On Thursday, the Dow Jones Industrial Average fell 0.3%, though stocks mostly advanced.

Bond prices mostly declined. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.42% from 2.44% late Thursday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.08% compared with late Thursday.

The dollar declined against other major currencies, while gold prices fell.

Oil prices fell 69 cents to $41.01 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 0.5%. In afternoon trading, Britain's FTSE 100 declined 0.4%, Germany's DAX index rose 0.03%, and France's CAC-40 fell 0.3%.