Futures Pointing To Initial Strength On Wall Street Following Jobs Data

Following the sharp pullback seen in the previous session, stocks may move back to the upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 91 points.

The upward momentum on Wall Street comes following the release of a closely watched Labor Department report showing employment in the U.S. increased by slightly more than expected in the month of December.

The report said non-farm payroll employment jumped by 223,000 jobs in December after surging by a revised 256,000 jobs in November.

Economists had expected employment to shoot up by 200,000 jobs compared to the addition of 263,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate edged down to 3.5 percent in December from a revised 3.6 percent in November.

The unemployment rate was expected to come in unchanged compared to the 3.7 percent originally reported for the previous month.

While the upbeat jobs data may add to recent concerns about the outlook for interest rates, traders may feel higher rates were priced in following yesterday’s stronger-than-expected private sector jobs data.

Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of December.

The ISM’s services PMI is expected to edge down to 55.0 in December from 56.5 in November, although a reading above 50 would still indicate growth.

The Commerce Department is also due to release its report on factory orders in the month of November. Factory orders are expected to slump by 0.9 percent in November after jumping by 1.0 percent in October.

Stocks moved sharply lower in early trading on Thursday and remained firmly negative throughout the session. With the steep drop on the day, the major averages more than offset the gains posted on Wednesday.

The major averages all showed notable moves to the downside on the day. The Dow slumped 339.69 points or 1.0 percent to 32,930.08, the Nasdaq plunged 152.52 points or 1.5 percent to 10,305.24 and the S&P 500 tumbled 44.87 points or 1.2 percent to 3,808.10.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index climbed by 0.6 percent, while China’s Shanghai Composite Index inched up by 0.1 percent.

The major European markets have also moved to the upside on the day. While the French CAC 40 Index had advanced by 0.8 percent, the U.K.’s FTSE 100 Index is up by 0.5 percent and the German DAX Index is up by 0.4 percent.

In commodities trading, crude oil futures are inching up $0.11 to $73.78 a barrel after climbing $0.83 to $73.67 a barrel on Thursday. Meanwhile, after falling $18.40 to $1,840.60 an ounce in the previous session, gold futures are edging up $4.30 to $1,844.90 an ounce.

On the currency front, the U.S. dollar is trading at 133.48 yen versus the 133.41 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0523 compared to yesterday’s $1.0522.

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