Stock Futures Decline as Job Report Disappoints
NEW YORK ( TheStreet) -- Stock futures were pointing to a lower open on Wall Street Friday indicating a pullback from the record gains of the prior session after investor confidence took a hit from a disappointing job report and lackluster personal income and spending data.
Futures for the S&P 500 were down 0.75 points, or 2.52 points below fair value, to 1,699.50. The S&P 500 crossed 1,700 for the first time in its storied history Thursday after an encouraging U.S. initial jobless claims report and solid earnings reports from Yelp
Futures for the Dow Jones Industrial Average were off 8 points, or 23.02 points below fair value, to 15,542.
The July nonfarm payrolls report showed an addition of a less than expected 162,000 jobs last month after a downwardly-revised 188,000 in June, according to the Bureau of Labor Statistics. Meanwhile, the release said that the jobless rate slipped to a lower-than-expected 7.4% from 7.6% but amid a decline in the labor participation rate. Economists, on average, were expecting nonfarm payrolls to rise by 184,000 and the unemployment rate to fall to 7.5%.
Personal income rose by a less-than-expected 0.3% in June, down from a downwardly-revised 0.4% in May, according to Bureau of Economic Analysis. Economists were expecting personal income to increase 0.4%. Personal spending increased by an as expected 0.5%, up from a downwardly revised 0.2%.
At 10 a.m. EDT, the Census Bureau is expected to say that factory orders increased 2.3% in June after rising 2.1% in May.
St Louis Federal Reserve President James Bullard speaks about the economy in Boston at 12:15 p.m.
American International Group
LinkedIn forecast revenue for the current quarter that trailed forecasts. The company said it is expecting sales in a range of $367 million to $373 million, trailing an average analyst projection for $383.3 million, according to data compiled by Bloomberg.