RTRS: US STOCKS-Futures indicate lower open, jobs data looms
U.S. stock index futures pointed to a lower open on Friday as investors fretted about gloomy earnings ahead of government data expected to show job losses rose again in January as the recession deepened.
More signs of mounting labor market gloom would further fuel worries about the corporate profit outlook and underscore the urgency with which Washington needs to agree on an economic stimulus plan to lessen the blow of recession.
Already cautious investors must also digest a fresh batch of poor quarterly earnings from companies including News Corp (NWSA.O) and Aon Corp (AOC.N). A 3 percent drop in oil prices CLc1 looked to be another hurdle for the market as energy shares were under pressure before the bell.
The January U.S. nonfarm payrolls report is due at 8:30 a.m. (1330 GMT).
"It's more likely that you're looking for numbers that are in-line with expectations," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
"Since investors are interested in getting a big stimulus package, I suppose negative news could be positive for those who feel that's key to the market's comeback."
S&P 500 futures SPc1 fell 0.5 point and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 climbed 12 points, and Nasdaq 100 NDc1 futures were up 5.50 points.
In earnings news before the bell, Aon Corp (AOC.N), the largest global insurance brokerage by assets, said net income fell sharply in the fourth quarter, hurt by restructuring and acquisition costs, but profit before special items beat Wall Street's estimates. For details see [ID:nN05433267].
After the bell on Thursday Rupert Murdoch's News Corp (NWSA.O) posted its biggest ever quarterly net loss, after taking an $8.4 billion writedown for the value of its Dow Jones acquisition, broadcasting licenses and other assets.
Excluding the charge, the results missed Wall Street forecasts as the recession exacerbated the fall in newspaper advertising sales and hit the company's other properties.
