Before the bell 7-6-07: Futures higher ahead of jobs report

Posted Jul 6th 2007 7:45AM by Melly Alazraki
Filed under: Before the Bell, Microsoft (MSFT), Apple Inc (AAPL), General Motors (GM), Motorola (MOT), Bausch and Lomb (BOL), Economic Data

Stock futures are indicating a higher start for U.S. stock markets this morning, ahead of the June jobs report that is expected to show steady growth.

Yesterday, stocks ended mixed as some segments showed strength, like hotels, but others, like car manufacturers pulled stocks down. Specifically, Apple helped boost the Nasdaq, while General Motors took the Dow industrials down with it.

Today, the main event this morning will be the June nonfarms payroll report due at 8:30 a.m. that in general is expected to show the economy is slowly improving, without affecting inflation too much. Any strong deviation from expectation will likely affect markets as too strong a report will spark inflation concerns and too weak a report concerns the economy has slowed down too much. Treasuries will be closely watched after the jobs report, as yields rose ahead of the report.
According to Briefing.com:

125,000 jobs are forecast to have been added in June, compared to 157,000 in May.
The unemployment rate is estimated to remain at 4.5%, same as the previous month.
Average hourly earnings is expected to rise by 0.3%, same as in May.

Overseas, Asian markets ended mixed today, as Shanghai and Hong Kong posted gains, while Japan's Nikkei closed down after a six-session winning steak. European stocks are generally rising as investors await news from the U.S.

Corporate news:

Microsoft Corp. (NASDAQ: MSFT) said it will take at least $1 billion charge to repair serious problems with its Xbox 360 video game console. MSFT shares are down 0.4% in pre-market trading (7:13 a.m.).

Advanced Medical Optics Inc. (NYSE: EYE) put a $4.23 billion offer for Bausch & Lomb Inc. (NYSE: BOL), higher than a previous offer of $3.67 billion from private equity firm Warburg Pincus. The offer breaks down to $75 per share of which $45 is in cash and $30 in stock.

Yesterday, Motorola Inc. (NYSE: MOT) said it expects to incur a net pretax charge of $101 million in the second quarter in connection with its previously announced layoffs.