Stocks fell Friday as Advanced Micro's ( AMD) sales shortfall sowed anxiety in the run-up to the June employment report. Index futures recently showed the S&P 500 trading half a point below fair value, while the Nasdaq 100 was set for a 1-point drop. The 10-year Treasury bond was unchanged in price to yield 5.18%, while the dollar fell against the yen and was little changed against the euro. AMD lost 5% after pegging second-quarter sales at $1.22 billion, about $90 million below the Wall Street consensus. A sequential decline in sales of desktop computers and some mobile devices was behind the decline. The news depressed stocks ahead of another key reading on the U.S. job market. At 8:30 a.m. EDT, the Labor Department is expected to say that the economy added 200,000 jobs in June while the unemployment rate held steady at 4.6%. Average hourly earnings, a key inflation metric, are expected to rise by 0.3%. As usual, the employment numbers will be crucial insight into the pace of growth in the U.S. economy and, in turn, the future of Federal Reserve interest rate policy. Last week, the Fed raised its benchmark lending rate a quarter point to 5.25% and said future moves would depend on the character of incoming economic data. Another story Friday morning was oil, which rose to a record $75.42 a barrel in overnight trading. The gain came a day after the Energy Department reported a 1.4% rise in gasoline consumption last week compared with a year ago. In recent trading, oil was up 17 cents to $75.31 a barrel. Gold fell $4.30 to $632 an ounce while copper lost 6 cents to $3.56 a pound. Overseas markets were narrowly mixed. London's FTSE 100 recently was gaining 0.1% to 5894, while Germany's Xetra DAX fell 0.1% to 5679. In Asia, Japan's Nikkei rose 0.1% overnight to 15,308, while Hong Kong's Hang Seng rose 0.1% to 16,460. To view Farnoosh Torabi's video take on today's premarket action,
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On Thursday, a 6% rally in shares of Altria ( MO) propelled the Dow Jones Industrial Average 73 points to 11,225. The Nasdaq Composite, meanwhile, rose 2 points to 2155, held back by a 5% decline in shares of eBay ( EBAY). General Motors ( GM) continues to be a market focus. On Friday, directors of the No. 1 U.S. automaker will take up a proposal to align with Nissan and Renault that is backed by 10% holder Kirk Kerkorian. Prospects for such an alliance led Deutsche Bank to raise its rating on GM shares to hold from sell Friday. Deutsche Bank also offered a broad call on the optical networking sector Friday, initiating JDSU ( JDSU) and Bookham ( BKHM) at hold and Finisar ( FNSR) at buy. Shares of Starbucks ( SBUX) lost nearly 4% after the coffee store chain reported same-store sales growth of 6% in June. Analysts polled by Thomson First Call were expecting a gain of 7%.