MW: U.S. stock futures steady before payrolls report
U.S. stock futures clung close to the flat line Friday as traders braced for news that about half a million jobs were lost in the last month.
S&P 500 futures slipped four-tenths of a point to 840.10 while Nasdaq 100 futures rose 3 points to 1,237.50. Dow industrial futures slipped 4 points.
U.S. stocks closed higher on Thursday, with technology and financials pacing the advance. The Dow Jones Industrial Average rose 106 points, the S&P 500 added 13 points and the Nasdaq Composite put on 31 points.
At 8:30 a.m. Eastern, the Labor Department will report on its non-farm payroll estimate for January. Economists surveyed by MarketWatch are forecasting a seasonally adjusted loss of 525,000 jobs, nearly identical to the 524,000 lost in December and the fifth straight month of losses of more than 400,000.
Washington also will be in the spotlight on a possible Senate vote on the stimulus package and on speculation about the Obama administration's bank rescue plan due to be announced Monday.
"Employment is a lagging indicator, but the sheer pace of job losses means that the economy will remain stricken in a downward spiral for the time being," said economists from Dutch brokerage SNS Securities.
"Despite the worries equity markets recovered yesterday later in the session as investors cling to Obama's proposed stimulus package."
The dollar rose against the Japanese yen, while the British pound advanced for a second day. Oil futures held over $40 a barrel and gold futures traded around $915 an ounce.
Of companies in the spotlight, Toyota Motor warned of a $5 billion operating loss for the fiscal year as sales weaken in Japan and overseas markets and an appreciating yen trims the value of repatriated foreign earnings. The operating loss is Toyota's first since the end of World War II.
News Corp. dropped 4% in Sydney trade after reporting a $6.4 billion loss as it wrote down the value of television stations and newspaper assets it owns. The group says operating income will drop about 30% this year.
News Corp. owns MarketWatch, the publisher of this report.
Hartford Financial Group may drop as the insurer reported an $806 million quarterly loss and cut its dividend.
Overseas markets were generally stronger. Shipping stocks in Asia extended gains as the Baltic Dry Index's rise continues to garner attention, with the Nikkei 225 rising 1.6% in Tokyo and the Hang Seng rising 3.6% in Hong Kong.
European stocks also rose, with luxury plays like LVMH, Hermes and BMW advancing. The FTSE 100 rose 0.5% in London and the German DAX 30 rose 0.5% in Frankfurt.
