Ahead of the Bell: Dow futures are trading up 49 points and S&P futures are trading up 7 points. The focus today will be on the January jobs report following a paltry showing of 74K new jobs were created by the private sector in December. The employment data likely rebounded in January after being held back by cold weather in the month prior. Economists are forecasting nonfarm payrolls to have increased by 185K last month, while the unemployment rate remains unchanged at 6.7%. Economists are also expecting December's dismal count of 74K net new jobs to be revised sharply. The employment report is expected to boosts confidence after the recent rout and steep sell off in emerging economies which raised fresh concerns about the global growth outlook. Investor's optimism was boosted in the previous trading. Session after the weekly jobless claims data showed a drop in applications for unemployment insurance, while corporate results have been decent.
- On the economic calendartoday, other reports include consumer confidence for December which is expected to be $12.0B compared with $12.3B for November.
- The dollar is up against the euro and down against the Japanese yen and the British pound. Gold is trading at $1,261. Crude oil is currently trading at $97 a barrel.
- Yesterday, stocks rose, sending benchmark indexes to their best gains of the year, as claims for unemployment benefits fell and earnings from Walt Disney Co.
- On CNBC today, former Federal Reserve Chairman, Alan Greenspan talked about the employment data, GDP, and stocks. Greenspan said this is a very distorted labor market as there is a very large imbalance between job skills. We have a serious problem with respect with job skills. He said what is troubling is there are people from outside the US who come to America to get educated and are required to leave. We need to keep these people here to build the workforce. He went on to say we have to look at GDP of what and where goods and services are produced. Almost all of GDP short fall is no longer termed goods and services. He feels there is a shortfall in corporate confidence and in the long term stocks are still undervalued.
- Have a great day and a wonderful weekend!
Thursday’s Close
DJIA up 188.30 pts/+1.22%/ 15,628.53
S&P down 21.79 pts/+1.24%/ 1,773.43
Nasdaq down 45.57 pts/+1.14%/ 4,057.12
Friday’s Futures
Dow Futures up 49.00 pts/+0.32%
S&P Futures up 7.25 pts/+0.41%
Nasdaq Futures up 19.00 pts/+0.56%
Overseas Markets
FTSE +0.21%
CAC 40 +0.27%
NIKKEI 225 +2.17%
HANG SENG +1.00%
Overseas: Global stock markets are mixed today. European markets are trading off of two-week lows following the turnaround in US major indices. Asian markets are mixed after emerging markets stabilized but out flow of funds continues.
Economic Reports: Nonfarm Payrolls (181K expected) at 8:30 a.m.; Unemployment Rate (6.7% expected) at 8:30 a.m.
Top Headlines:
- Antero Resources Midstream has filed to raise up to $500 million in an IPO. Barclays, Citigroup and Wells Fargo Securities are underwriting the offering which will list its common stock on the New York Stock Exchange under the symbol "AM."
- Carlyle Group LP (CG) said it has agreed to buy Illinois Tool Works Inc's industrial packaging unit for $3.2 billion, the private equity firm's latest acquisition of a large unit being carved out of conglomerates.
- Apple Inc. (AAPL) bought $12 billion of shares via an accelerated share repurchase program (ASR) and $2 billion of shares from the open market. An ASR usually involves a company buying its shares from an investment bank.
Commodities/Currency:
Gold:up $4.80 to $1,261.00
Oil:down $0.31 to $97.54
EUR/USD 1.3569 -0.0020
USD/JPY 102.2800 +0.2075
GBP/USD 1.6337 +0.0019
Volatility Index (VIX): As of the close of business Thursday, February 6, 2014 the VIX is down 2.72 at 17.23.
Companies Reporting Quarterly Earnings:
Domtar reports preliminary Q4 adj EPS $2.09, vs. Est $1.53 and preliminary Q4 revenue $1.36B, vs. Est $1.36B.
EnPro reports Q4 EPS 22c, vs. Est 23c and Q4 revenue $275.5M, vs. Est $268.67M.
Moody's reports Q4 adj EPS 85c, vs. Est 76c and Q4 revenue $779.2M, vs. Est $743.87M.
Today’s Opening and Closing Bells:
Ladder Capital Celebrates IPO on the New York Stock Exchange. Senior Management will ring The Opening Bell.
ONE Gas (NYSE: OGS) will visit the New York Stock Exchange(NYSE) to highlight the company’s January 31stspin-off from ONEOK(NYSE: OKE). CEO Pierce Norton will ring the NYSE Closing Bell.
For daily market recaps, check out our End of Day Report every evening!
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