Wall Street waits for jobs reportGovernment employment report eagerly awaited as investors look for evidence that Fed will keep cutting rates.LONDON (CNNMoney.com) -- U.S. stocks are likely to trade lower Thursday as investors move to the sidelines ahead of a closely watched employment report that could provide clues about the future direction of interest rates. At 4:26 a.m. ET, futures were weaker and pointing to a lower open for Wall Street. Traders are anxious ahead of the September jobs report due out on Friday. The government report is expected to show a gain of 100,000 jobs after a decline in August, according to economists surveyed by Briefing.com. The number is likely to play a big factor as the Federal Reserve decides whether or not to keep cutting interest rates. A weak report could give policymakers room to keep lowering rates. A much stronger report could also rattle investors hoping for more cuts from the Fed. In addition to the rate outlook, investors will be looking to the report for signs of economic weakness. A number that comes in well below expectations could reignite recession fears and overshadow any boost stocks get from the likelihood of more rate cuts. Investors will take in two economic readings on Thursday. A weekly report on jobless claims is due at 8:30 a.m. ET and a reading on August factory orders is slated for 10 a.m. ET. In major corporate news, Sprint Nextel (Charts, Fortune 500) CEO Gary Forsee is feeling the pressure from activist investor Ralph Whitworth, according to report in the Wall Street Journal. In global trade, Asian markets ended lower, led by declines in Hong Kong. Major European markets fell in early trading. |
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