Stock Futures Slip as October Jobs Report Raises Taper Prospects

Tickers in this article: DIS GRPN PCLN TWTR ^DJI ^GSPC ^IXIC

NEW YORK (TheStreet) -- Stock futures were paring gains Friday as an upbeat jobs report increases the possibility that the Federal Reserve will begin to curb its economic stimulus measures sometime in the coming months.

The Labor Department report showed the U.S. workforce adding 204,000 jobs in October, the Labor Department said Friday. Economists were expecting 125,000 to have been created last month, according to a Reuters survey.

The unemployment rate rose to 7.3% from 7.2% in the previous month, reflecting a lower workforce participation rate. The report is being closely watched by the Federal Reserve to assesses whether to maintain its massive stimulus program.
 
Futures for the S&P 500 were rising 6.35 over fair value to 1,742.15 while Dow Jones Industrial Average futures were up 42.02 over fair value to 15,583.0. Nasdaq futures were rising 14.99 over fair value to 3,316.31.
 
Markets closed lower Thursday as a higher-than-expected GDP result of 2.8% for the third quarter fueled speculation the central bank may cut back stimulus sooner than expected. Adding to uncertainty over the growth outlook, Europe's central bank made a surprise rate cut in a bid to spur demand across the region.
 
Aside from jobs, personal income and outlay data will be watched Friday, with forecasts for a 0.3% rise in personal income during September and a 0.2% lift in consumer spending. The results are due at 8:30 a.m. with consensus figures representing a slight drop on the prior month.
 
Consumer sentiment data at 9:55 a.m. is expected to show a reading of 75 for November up from 73.2 in October. Consumer sentiment is directly related to the strength of consumer spending.
 
Twitter shares were rising 0.78% to $45.25 in premarket trade. The company's shares opened at $45.10 on Thursday, exceeding the $26 a share IPO price before closing at $44.90. The offering raised more than $2 billion and valued the business at $18.34 billion.
 
Other companies expected to see price action Friday include Walt Disney , which posted higher fourth-quarter profit or $1.39 billion, or 77 cents a share, after the market close on Thursday, up from $1.24 billion, or 68 cents a share, a year earlier. Company revenue rose to $11.57 billion from $10.78 billion. Shares of Disney fell over 1% after hours and were off 0.98% to $66.49 in premarket trade Friday.