MW: U.S. stock futures extend losses after jobs report
U.S. stock-index futures, which were already trading about 1% lower Friday, extended losses after the official payrolls report showing the U.S. economy added 173,000 jobs last month while the unemployment rate dropped to 5.1%.
The monthly jobs report is widely seen as the last notable reading on the U.S. economy’s health before the Federal Reserve decides whether to raise interest rates at its two-day meeting on September 16-17. August job gains were below the consensus estimates of 213,000, but still solid enough for the Federal Reserve to consider raising rates at the September meeting.
S&P 500 futures ESU5, -1.39% fell 28.85 points, or 1.5%, to 1,917.25
Dow Jones Industrial Average futures YMU5, -1.42% dropped 258 points, or 1.6%, to 16,090. Nasdaq-100 NQU5, -1.36% declined by 64.5 points, or 1.5%, to 4,165.
On Thursday, the S&P 500 SPX, +0.12% and Dow DJIA, +0.14% finished higher for a second day in a row, but only after giving up most of their intraday gains. The two indexes are both on pace for weekly drops of nearly 2% as of Thursday’s close.
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Also see: Panel of ex-Fed officials say no rate hike in September
The U.S. economy created a modest 173,000 new jobs in August to mark the smallest gain in five months, but the unemployment rate fell to 5.1% from 5.3%, the government said Friday. Meanwhile, payroll gains for July and June were raised by a combined 44,000.
Other markets: Japan’s Nikkei NIK, -2.15% dropped and notched its biggest weekly drop since April 2014, while trading in China was closed for a national holiday.
European stocks SXXP, -2.50% lost ground, and crude-oil prices CLV5, -0.77% also retreated. The dollar DXY, -0.06% and gold GCZ5, -0.48% both pulled back.
Trading in U.S. markets will be closed Monday for the Labor Day holiday. Check out: When do markets close for Labor Day
Movers and shakers: Shares in Netflix Inc. NFLX, -4.15% fell 2.9% in premarket action, putting the streaming-video company on track for its sixth down session in a row. The slump has come as investors fret about increasing competition.
Late Thursday, Amazon.com Inc. AMZN, -1.14% signaled it is eyeing more streaming options by announcing that it plans to buy video reformatter Elemental Technologies Inc.
Shares in Twitter Inc. TWTR, +1.73% could make moves, as the social-media company is expected to name a new CEO, perhaps as early as Friday.
Chinese e-commerce giant Alibaba Group Holding Ltd. BABA, +1.42% also was grabbing the spotlight following news that its founders plan to borrow $2 billion against their shares in the company.
