U.S. stock futures were higher Friday morning, continuing Thursday's strong performance and nearing two-week highs. All eyes this morning will turn to the government's jobs report. While there have been signs of growth and recovery in the economy, the labor market has been one of the biggest concerns, as the Federal Reserve statement just from Wednesday attests.[Update 8:33 a.m.: Stock futures changed course after the government reported the unemployment rate rose to 10.2%, above the 9.9% expected. Nonfarm payrolls dropped by 190,000 in October, bringing to total number of jobs lost in the recession to 7.3 million.]
U.S. stock markets surged about 2% on Thursday with the Dow Jones Industrial Average reclaiming the 10,000 mark with a 203 point move. Positive economic news, including sales results from retailers and upbeat outlook from tech giant Cisco (NASDAQ: CSCO).
The economy is in recovery mode, most signs indicate, rebounding from its deepest slump since the 1930s. While normally employment is a lagging factor -- that is, beginning to recover after the economy -- this time concerns regarding the labor market seem greater as the possibility of a jobless recovery increases. Investors will also look at the employment report to gauge upcoming consumer spending during the holiday season.
The government will release nofarm payrolls for October at 8:30 a.m. Eastern, and despite the probable few months of economic recovery in the works, the economy probably lost a net total of 175,000 jobs last month, pushing the unemployment rate to 9.9%, according to Briefing.com. Most economists expect unemployment to reach over 10% in coming months.
Other than nonfarm payrolls, wholesale inventory data for September is due out at 10:00 a.m.
Overseas, stock markets rose Friday ahead of the release of the key U.S. jobs data. The employment situation is dire all over the world, though, even as economic recovery signs have been seen in Europe and elsewhere. This week the European Union forecast unemployment in the eurozone will rise to 10.7% in 2010 from 9.5% this year. Eurozone unemployment rose to a 10-year high of 9.7% in September. In the developing world, the downturn has also taken its toll. This explains why The G20 will agree this weekend to maintain stimulus policies.
Why is gold marching higher? Ask the central bankers
Newspaper ad revenue of 28%, 8 quarters of double-digit drops
Closing Bell: Earnings working against stocks (BCRX, DELL, DHI, INTC, LEAP, PCS)
Add your comments