Friday November 3rd

3-11-2017

US stock futures trade higher after jobs report disappoints

U.S. stock index futures pointed to a slightly higher open Friday after the release of a disappointing jobs report. Dow Jones industrial average futures rose 37 points, while S&P 500 and Nasdaq 100 futures advanced 2.75 points and 35.25 points, respectively. The U.S. economy added 261,000 jobs last month. Economists polled by Reuters expected a gain of 310,000 jobs. The report also showed average hourly earnings remained flat for October. Other data set for release Friday include the U.S. Services PMI, followed by factory orders and the non-manufacturing ISM report on business. On the earnings front, Bloomin' Brands, Cinemark, and Sotheby's were among the companies that reported earnings before the bell. No major companies are expected to report after the close. Looking to the central bank space, investors are likely to still be digesting the news that President Donald Trump nominated Fed Governor Jay Powell as the person to take on the role as head of the U.S. Federal Reserve from February 2018. Powell will be replacing current Chair Janet Yellen when her tenure expires. In politics, House Republicans unveiled a plan Thursday to overhaul the tax code. As part of that reform package, the GOP aims to permanently lower the corporate tax rate to 20 percent. The House bill would also slash the number of income tax brackets from seven to four. President Trump will be beginning his trip to Asia on Friday, stopping off in countries including Japan and China to strengthen the U.S.' relationship with Asian nations.Looking to markets, European stocks were mostly higher during market trade, while markets in Asia closed mostly mixed. Markets in Japan are closed for Culture Day. South Korea's Kospi reversed early losses to close up 0.46 percent at 2,557.97 as automakers notched gains. Greater China markets were mixed. Hong Kong's Hang Seng Index was up 0.28 percent by 3:07 p.m. HK/SIN while mainland markets recorded losses: The Shanghai Composite slid 0.36 percent to close at 3,371.21 and the Shenzhen Composite lost 0.71 percent to finish the session at 1,975.92. Gold turned positive after U.S. jobs data for October yielded worse-than-expected numbers. Spot gold edged up 0.14 percent to $1,277.42 per ounce at 8:44 a.m. ET, and was on track for its first weekly gain in three. It hit its highest in about two weeks, at $1,284.10, in the previous session. The precious metal was down prior to the news that the U.S. economy added 261,000 jobs in October, below the 310,000 jobs expected. U.S. gold for December delivery rose to break even at $1,278.10.