Before the bell: Futures mixed ahead of employment report

Posted Dec 2nd 2009 7:40AM by Melly Alazraki
Filed under: Before the Bell, International Markets, General Electric (GE), Market Matters, Comcast Cl'A' (CMCSA), Economic Data, Commodities, Oil, Federal Reserve

U.S. stock futures were mixed and basically flat Wednesday morning with so much on investors' minds after the Dow closed at a 14-month high Tuesday. A jobs report could be an early indication of Friday's non-farm payroll. Also, the shakeup at General Motors and soaring gold prices will be in focus.

Stocks rallied Tuesday as concerns about Dubai's debt problems waned and gold hit a record above $1,200. Also, GE (GE) and Comcast (CMCSA) moving closer to a deal on NBC Universal, as well as decent November car sales and higher home sales boosted sentiment, even as a manufacturing index fell. The Dow Jones industrial average added 127 points, or 1.2%, closing at the highest point since Oct. 2, 2008. The S&P 500 index gained 1.2%, and the Nasdaq composite rose 1.5%.

On the economic docket today are mainly two reports: The ADP employment report for November is due at 8:15 a.m. Eastern. Employers in the private sector are expected to have cut 150,000 jobs from their payrolls in November, according to Briefing.com, after cutting 203,000 in the previous month. Challenger, Gray & Christmas will also release its November report on planned job cut announcements in the morning.

The Fed's Beige Book of anecdotal evidence on the economy is due at 2:00 p.m. While no major changes are expected from the last book, a continued trend of stabilization or modest improvements in many sectors will likely continue.

And gold continued its relentless climb, hitting record highs at $1,216.75 an ounce in Europe on Wednesday. Investors bet on higher prices, with funds lengthening positions due to expectations of upcoming renewed dollar weakness as interest rates are likely to remain low and more central bank buying. Gold even reached all-time highs in other currencies, indicating independent gold strength. The dollar edged up slightly against the euro.

Oil prices, however, fell to near $78 a barrel Wednesday in Asia after U.S. crude supplies unexpectedly rose, suggesting demand in the world's largest economy remains weak. The Energy Information Administration will also announce its inventory report at 10:30 a.m.

Overseas, Asian stocks finished higher, following a recovery in Europe and the U.S. as worries over Dubai's debt problems faded. European stock markets took a breather Wednesday following big gains the previous day as investors awaited key economic news out of the U.S.

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