Stock Futures Decline as Job Report Disappoints
NEW YORK (TheStreet) -- Stock futures were pointing to a lower open on Wall Street Friday indicating a pullback from the record gains of the prior session after investor confidence took a hit from a disappointing job report and lackluster personal income and spending data.
Futures for the S&P 500 were down 0.75 points, or 2.52 points below fair value, to 1,699.50. The S&P 500 crossed 1,700 for the first time in its storied history Thursday after an encouraging U.S. initial jobless claims report and solid earnings reports from Yelp (YELP) and Procter & Gamble (PG) amid indications that the Federal Reserve has no intention to reduce its stimulative bond-buying program anytime soon.
Futures for the Dow Jones Industrial Average were off 8 points, or 23.02 points below fair value, to 15,542.
The July nonfarm payrolls report showed an addition of a less than expected 162,000 jobs last month after a downwardly-revised 188,000 in June, according to the Bureau of Labor Statistics. Meanwhile, the release said that the jobless rate slipped to a lower-than-expected 7.4% from 7.6% but amid a decline in the labor participation rate. Economists, on average, were expecting nonfarm payrolls to rise by 184,000 and the unemployment rate to fall to 7.5%.Personal income rose by a less-than-expected 0.3% in June, down from a downwardly-revised 0.4% in May, according to Bureau of Economic Analysis. Economists were expecting personal income to increase 0.4%. Personal spending increased by an as expected 0.5%, up from a downwardly revised 0.2%. At 10 a.m. EDT, the Census Bureau is expected to say that factory orders increased 2.3% in June after rising 2.1% in May. St Louis Federal Reserve President James Bullard speaks about the economy in Boston at 12:15 p.m. American International Group (AIG) was jumping 5.37% to $49.60 in premarket trading after the insurance giant posted a 17% increase in second-quarter net income, declared a 10-cent dividend and said its board approved a share buyback plan of up to $1 billion. LinkedIn's (LNKD) shares were surging 9.86% to $234 in premarket trading after the professional networking site reported second-quarter earnings results that topped Wall Street forecasts as the company posted a profit of 38 cents a share on revenue of $363.7 million, a 59% increase from a year earlier. LinkedIn forecast revenue for the current quarter that trailed forecasts. The company said it is expecting sales in a range of $367 million to $373 million, trailing an average analyst projection for $383.3 million, according to data compiled by Bloomberg. Toyota (TM) was rising 2.67% to $129.61 after saying Friday that fiscal first-quarter profit nearly doubled on a weaker yen and it set a worldwide production goal for the 2013 calendar year at 10.1 million vehicles, which would be an industry record, according to The Associated Press. The Japanese automaker also raised its full-year earnings forecast to 1.48 trillion yen ($14.8 billion), up almost 54% from the previous year. Dell (DELL) was adding on 5.21% to $13.63 after CNBC reported that the company's special committee has reached a deal with the buyout group led by CEO Michael Dell to acquire the company for $13.75 a share. The FTSE 100 in London was slipping 0.11%, while the DAX in Germany was up 0.07%. The Hong Kong Hang Seng finished up 0.46%, and the Nikkei 225 in Japan closed ahead by 3.29%. The benchmark 10-year Treasury was declining 6/32, raising the yield to 2.734%. The dollar was rising 0.07% to $82.40 according to the U.S. dollar index. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV