Stock futures tumble on dour jobs report

chart_ws_index_sp500futures.top.pngClick chart for more futures data By CNNMoney.com staff


NEW YORK(CNNMoney.com) -- Stock futures turned lower Friday after a government report showed that U.S. job growth in November was much slower than expected.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures revered earlier gains and turned lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Investors have been buying up stocks and other risky assets this week, following a batch of improved economic indicators. But the tone turned cautious Friday after the government's monthly report on hiring and unemployment came in weaker than expected.

"This was certainly something that everyone was leaning in the wrong direction on," said Art Hogan, chief market strategist at Jefferies & Co. He said the report does not suggest that the economy could slip back into recession, but he acknowedged that "we're in for some tough sledding today."

Stocks had another big rally Thursday, as investors cheered strong retail sales figures and a pledge of support from the European Central Bank. Thursday's gains, coming on top of Wednesday's powerful rebound, pushed the Dow near its highs for the year, and lifted the S&P 500 above the key technical level of 1,200 points.

Economy: The U.S. economy added 39,000 jobs in November, the lowest number since September, the Labor Department said.

The total fell far short of expectations. An exclusive CNNMoney.com panel of economists had forecast a gain in payrolls of 150,000 jobs, with some even going as high as 200,000.

The unemployment rate rose to 9.8% after holding at 9.6% for several months.

A separate government report is expected to show that factory orders fell 1.3% in October, after a 2.1% gain in September.

The Institute for Supply Management's November index on manufacturing activity is forecast to edge up to 54.5, from 54.3.

Companies: Walter Energy (WLT) will buy Western Coal for $3.3 billion, the companies announced Friday. Walter Energy will pay $11.50 per share for the Canadian coal company, creating one of the world's largest publicly-traded producers of steel-making coal.

Shares of Ford (F, Fortune 500) were higher in premarket trading, after the automaker reported a 20% increase in November sales on Thursday.

World markets: As part of its battle with inflation, China will move to a more "prudent" monetary policy stance next year, the nation's Political Bureau said. The announcement was made Thursday morning in a report by Xinhua -- the government's official news agency.

The report stated that the move away from a "relatively loose" policy, put in place during the global recession in 2009, is aimed at curbing rising prices in China. The People's Bank of China hiked its benchmark interest rate in October, and raised the reserve requirement ratio for banks twice within one month, according to the report.

Asian markets ended the session mixed. The Shanghai Composite was flat, the Hang Seng in Hong Kong slipped 0.5% and Japan's Nikkei rose 0.1%.

European stocks fell. Britain's FTSE 100 was down 0.5%, France's CAC 40 slid 0.2% and the DAX in Germany fell 0.3%.

Currencies and commodities: The dollar fell against the euro, the Japanese yen and the British pound.

Oil for January delivery slid 22 cents to $87.79 a barrel.

Gold futures for February delivery rose $11.70 to $1,400 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, with the yield falling to 2.9% from 3% late Thursday. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.