U.S. stock index futures pointed to a mixed open on Friday, as investors await the release of the closely watched monthly nonfarm payrolls report.
As of 6:58 a.m. ET, Dow Jones Industrial Average futures indicated a gain of 41.33 points at the open. S&P 500 futures pointed to a flat open while Nasdaq 100 futures indicated a lower open.
Economists polled by Refinitiv expect the U.S. economy to have added 170,000 jobs in January. The report comes after data released Wednesday by ADP and Moody’s Analytics showed private payrolls increased by 213,000 jobs last month. Investors will be watching Friday’s jobs report for clues about the state of the U.S. economy.
Wall Street also digested key earnings from companies like Amazon and Merck. On Thursday, Amazon reported better-than-expected earnings and revenue for the fourth quarter. However, the company issued weaker-than-expected revenue guidance for the first quarter and warned about increasing investments. These concerns pushed Amazon shares down by 4.3 percent. Merck, meanwhile, posted a better-than-expected profit and revenue, but its shares fell 0.6 percent before the bell.
— RECOMMENDED —
Three Simple Trend Lines
Tranquil Trading: “All You Need is 3 Simple Trend Lines”
Exxon Mobil, Chevron, and Merck will be out with quarterly earnings this morning, along with Honeywell, Illinois Tool Works, Johnson Controls, and KKR.
Money managers are also keeping an eye on trade talks between China and the United States. Both negotiating teams have said they made “important progress.” President Donald Trump also said he would soon meet with Chinese premier Xi Jinping to try to reach a comprehensive trade deal. Stocks had taken heart from the possibility of top-level trade talks over the coming weeks, but the upbeat mood soon cooled when the White House insisted it sees March 1 as a hard deadline for a deal.
Earlier on Friday, a survey showed Chinese factory activity falling to its lowest level since February 2016. The downbeat data exacerbated fears of an economic slowdown.
The moves Friday come after Wall Street posted its biggest January gain since 1987 in the previous session. Strong earnings and an indication from the Federal Reserve that it will pause rate hikes boosted investor confidence. The S&P 550 ended January up more than 7 percent.
Source: cnbc.com | Original Link