Before the bell: Futures fall ahead of employment data

Posted Jul 2nd 2009 7:40AM by Melly Alazraki
Filed under: Before the Bell, International Markets, General Motors (GM), Market Matters, Economic Data

U.S. stock futures were lower Thursday morning, the last day of trading in this shortened week and ahead of the holiday weekend. Investors this morning will turn their attention to the June jobs report for clues on whether the economy can continue to recover.

At 8:30 this morning two jobs report are going to be released. The weekly initial jobless claims report and June nonfarm payroll statistics. Economists surveyed by Bloomberg expect employers in the U.S. probably cut an additional 365,000 jobs in June. If the data comes out as expected it would be evidence the stimulus plan has helped the labor market. In addition, the unemployment rate likely climbed to 9.6 percent, the highest since 1983. Unemployment is projected to keep rising for the rest of the year. [Update: Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent.]

At 10:00 a.m., the Commerce Department will release the May factory orders report. Orders are expected to have risen 0.9% after climbing 0.7% in April.

Overseas, world stocks mostly fell Thursday as investors awaited the crucial U.S. jobs report.

Meanwhile, General Motors may file for an initial public offering of its stock in 2010, according to an adviser to the Obama Administration's auto task force.