By Barbara Kollmeyer, MarketWatch Europe stocks rally on talk
early QE may be coming after all
MADRID (MarketWatch) -- U.S. stock futures rose slightly on
Friday as investors waited for a batch of data, including
all-important nonfarm payrolls, along with numbers showing whether
pay for American workers is rising.
Futures for the Dow Jones Industrial Average (DJZ4) rose 16
points to 17,906, while S&P 500 futures (SPZ4) ticked up 1
point to 2,072.90. Futures for the Nasdaq-100 index (NDZ4) rose 4
points to 4,3170.50.
U.S. stocks retreated from record highs on Thursday, showing the
typical caution ahead of jobs data. Intraday records were hit after
reports that the European Central Bank may deliver on stimulus
after all, but those faded in a choppy day of trade. The S&P
500 index (SPX) lost 0.1%, along with the Dow industrials (DJI).
For the week, those indexes are up just 0.2% and 0.4%,
respectively. 10 biggest risks to the stock market in 2015
Whether a record-breaking streak can resume may hinge on what's
coming at 8:30 a.m. Eastern. November nonfarm payrolls data are
expected to show a gain of 235,000, though some have been talking
about a jobs gain of 400,000 plus. The unemployment rate is
expected to fall to 5.7% in November from 5.8%.
It is all about the wages: Perhaps getting even more attention
will be hourly wages, which have been stuck in a rut. Economists
expect wages to rise 0.2% after a slight 0.1% gain in October and
flat in September. This is one piece of data economists say will
show the economy is getting back to normal. Full preview here
Also out at the same time, the trade deficit for October, with
factory orders coming at 10 a.m. Eastern. Consumer credit will be
released at 3 p.m. Eastern.
Stocks to watch: There is ust one company was on the earnings
calendar Friday: Discount retailer Big Lots Inc.(BIG) posted a
third straight quarter of same-store sales growth, as a narrowing
loss led the company to raise the top end of guidance for the
current quarter.(BIG)
Dollar Tree Inc. (DLTR) may be active after the company unveiled
a list of concerns from the Federal Trade Commission over its
planned merger with Family Dollar Stores Inc (FDO) . The FTC may
require divestitures of stores, although they will not exceed the
number already mentioned in the merger agreement. The regulator
also expressed concerns about pricing rules.
Shares of Gap Inc.(GPS) may add to gains made late Thursday
after the retailer said November comparable sales were up 6% versus
the same month a year ago.
Gun maker Smith & Wesson Holding Corp.(SWB) could extend a
late-session slide after reporting weaker results.
Overseas markets: While the European Central Bank gave no hints
at Thursday's meeting about future stimulus, markets were convinced
otherwise, with European stocks up 1%. That came even as the
Bundesbank cut its German growth forecasts for this year and the
next two. The FTSE 100 was up slightly.
Chinese trading volume hit a record, with the Shanghai Composite
Index closing up 1.3% in a wild day of trading. The index has
gained nearly 10% this week. The Nikkei 225 index rose just 0.2%,
but supported the dollar, which stayed above the key Yen120
level.
Oil prices continued to fall, with crude (CLF5) hovering around
$66 a barrel and Brent under $70 a barrel after Saudi Arabia cut
prices for U.S. and Asia oil, and analysts are waiting to see if
other OPEC nations will follow. Gold prices(GCG5) eased as
well.
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