By William L. Watts, MarketWatch
FRANKFURT (MarketWatch) — U.S. stock index futures advanced Friday, shaking off earlier disappointment over a lack of immediate action this week by the Federal Reserve or the European Central Bank as investors await the release of July nonfarm payrolls data.
Futures on the Dow Jones Industrial Average DJU2 +0.77% rose 102 points to 12,933.
S&P 500 futures SPU2 +0.85% gained 12.30 points to 1,374.20, while Nasdaq-100 futures NDU2 +1.01% advanced 25.75 points to 2,644.25.
U.S. stocks ended lower on Thursday after the European Central Bank disappointed investors by failing to announce concrete measures to address the euro-zone debt crisis a week after ECB President Mario Draghi said the institution would do “whatever it takes” within its mandate to save the euro.
The U.S. Federal Reserve disappointed investors earlier this week, failing to extend its pledge to keep interest rates at extraordinarily low levels.
Investors may see weak payrolls numbers as a sign the Fed will eventually take further action, strategists said.
“The labor market’s performance is underwhelming in relation to previous cycles and with growth prospects deteriorating the Fed will be anxious to be seen to be doing something. As such, today’s report is likely to intensify expectations of further stimulus,” said James Knightley, economist at ING Bank. Jobs report preview.
Economists surveyed by MarketWatch forecast a net gain of 100,000 jobs in July, up from 89,000 in June. The unemployment rate is forecast to hold steady at 8.2%. See charts on what we already know about July jobs
The Labor Department will release July jobs data at 8:30 a.m. Eastern time. The Institute for Supply Management’s July nonmanufacturing index is slated for release at 10 a.m. Eastern. It’s forecast to come in at 52% versus 52.1% in June.
Disappointment in the lack of concrete measures by the ECB appeared to fade on Friday. Draghi said the ECB might intervene in bond markets, but only after distressed governments apply to the region’s rescue funds for help and agree to strict policy conditions.
Short-dated Spanish and Italian government bonds rallied sharply on Friday, sending yields ES:2YR_ESP -16.06% sharply lower. Ten-year yields ES:10YR_ESP -2.52% saw a more moderate decline. Draghi on Thursday said any bond-buying would be focused on the front end of yield curves.
European stocks bounced back from Thursday’s post-ECB decline, with the Stoxx 600 Europe index XX:SXXP +1.56% jumping 1.6%. Read Europe Markets
Professional-networking site LinkedIn Corp. LNKD +8.69% reported stronger-than-expected revenue after Thursday’s close and raised its full-year outlook. Shares rose 9.7% in premarket activity.
Shares of Knight Capital Group KCG -6.98% fell nearly 8% in premarket trade Friday after tanking 63% on Thursday and 33% on Wednesday. The firm’s shares were hammered after it disclosed that exiting erroneous trades caused by a technology snafu cost it $440 million. Read about Knight Capital
The company said Thursday it is looking at options to strengthen its capital.
Procter & Gamble Co. PG -0.78% on Friday said fiscal fourth-quarter earnings rose 45% thanks to gains from selling its snacks unit, while sales at the world’s largest consumer-products company fell and margins tightened. The company forecast current-quarter core earnings of 91 cents to 97 cents a share on a 4% to 6% fall in net sales, while confirming its full-year fiscal 2013 guidance.
The company said it would repurchase $4 billion of stock over the course of the fiscal year.
Media firm Viacom Inc. VIA -0.69% VIAB -0.87% said fiscal third-quarter earnings fell 7% as revenue from its media networks and filmed entertainment businesses sank.
WellCare Health Plans Inc. WCG -1.78% on Friday said second-quarter earnings fell 33% on litigation-related charges and higher patient claims that outweighed revenue growth. The company boosted its full-year earnings forecast by five cents to a range of $5.25 to $5.45 a share on premium revenue of $7.1 billon. The company forecast premium revenue between $7 billion and $7.1 billion in May.
Nymex crude-oil futures CLU2 +1.07% rose 93 cents to $88.06 a barrel. Gold futures GCZ2 +0.51% gained $8.80 an ounce to $1,599.50.
The dollar index DXY -0.55% , which measures the currency against a basket of six major rivals, fell to 82.761 from 83.320 in North American trade late Thursday.
The euro EURUSD +0.63% traded at $1.2273, up from $1.2180 on Thursday. The dollar changed hands at ÂĄ78.26 versus the Japanese currency USDJPY +0.06% , little changed from around ÂĄ78.20 on Thursday.
William L. Watts is MarketWatch's European bureau chief, based in Frankfurt.
