Healthy Job Market Could Keep Markets On Tenterhooks

(RTTNews) - The major U.S. index futures are pointing to lower opening on Friday, as the monthly non-farm payrolls report trigger worries that further Fed rate tightening is in the pipeline.  Although the job gain for January was soft, revisions to 2015 data showed a net upward revision. The jobless rate calculated on the base of the household survey unexpectedly edged down. This has given a thrust to the dollar, which is higher across the board. Crude oil is higher, while the rest of the commodities are mixed. Given the mixed message relayed by the NFP report, the markets could see some volatility.   U.S. stocks showed a lack of direction throughout Thursday's session before ending mostly higher, as volatile oil prices, mixed domestic data and the dollar's weakness played out in the minds of traders.    The major averages opened lower following the release of a report showing a bigger than expected increase in jobless claims and as oil flat lined. Thereafter, the averages moved back and forth across the unchanged line before ending in positive territory.    The Dow Industrials ended up 79.92 points or 0.49 percent at 16,417, the S&P 500 Index closed 2.92 points or 0.15 percent higher at 1,916 and the Nasdaq Composite closed at 4,510, up 5.32 points or 0.12 percent.    Nineteen of the thirty Dow components closed higher for the session, with Caterpillar (CAT), Goldman Sachs (GS), IBM (IBM) and United Technologies (UTX) leading the gains. On the other hand, Home Depot (HD), Merck (MRK), Nike (NKE) and Pfizer (PFE) moved notably lower.    Among the sectors, transportation, basic material, oil service, gold, housing, semiconductor, computer hardware and financial stocks gained ground, while pharmaceutical stocks moved to the downside.    On the economic front, the Labor Department reported that jobless claims rose to 285,000 in the week ended January 30th from 277,000 in the previous week. Economists expected claims to rise to 280,000 from the 278,000 originally reported for the previous week.    The four-week average rose to 284,750 from 282,750. Meanwhile, continuing claims calculated with a week's lag fell by 18,000 to 2.255 million in the week ended January 23rd.    Preliminary fourth quarter productivity and costs data showed a bigger than expected 3 percent sequential drop in productivity. Compensation rose 1.3 percent. Consequently, unit labor costs jumped 4.5 percent. Annually, productivity rose 0.3 percent.    The Commerce Department reported that factory orders fell 2.9 percent month-over-month in December, roughly in line with expectations.    Currency, Commodity Markets    Crude oil futures are rising $0.03 to $31.75 a barrel after receding $0.56 to $31.72 a barrel on Thursday. An ounce of gold is currently trading at $1,154.70, up $0.60 from the previous session's close of $1,157.50. On Thursday, gold jumped $16.20.?    On the currency front, the U.S. dollar is trading at 117.10 yen compared to the 116.78 yen it fetched at the close of New York trading on?Thursday. Against the euro, the dollar is valued at $1.1161 compared to yesterday's $1.1209.?    Asia    The major Asian markets ended mixed amid a return of risk aversion, as oil extended its overnight slide in Asian trading. The Japanese, Australian, Chinese and Taiwanese markets moved to the downside, while the rest of the major markets in the region advanced.    The Japanese market fell steeply, as the yen firmed up below the 117-level against the dollar. The Nikkei 225 Index opened lower and moved sideways in the morning. After declining further in the afternoon, the index trimmed some of its loss in the final hour of trading yet closed notably lower. At the close of trading, the index was down 225.40 points or 1.32 percent at 16,820.  A majority of stocks declined in the session.    Australia's All Ordinaries Index languished below the unchanged line throughout the session before ending down 3.70 points or 0.07 percent at 5,026. Financial, consumer discretionary and utility stocks came under selling pressure but material and energy stocks rose notably.    China's Shanghai Composite Index closed 17.53 points or 0.63 percent lower at 2,764, with the market set to remain closed next week for the Lunar New Year holidays.  Meanwhile, Hong Kong's Hang Seng Index ended up 105.08 points or 0.55 percent at 19,288.    On the economic front, a report released by the Australian Bureau of Statistics showed that retail sales were unchanged in December compared to the previous month, belying expectations for a 0.4 percent increase.    In its Statement on Monetary Policy, the Reserve Bank of Australia said the Australian economy continued to grow at a moderate pace and activity is rebalancing away from the resource sector towards non-resource sectors. The bank?maintained its projection for faster growth amid improving labor market conditions but downgraded its inflation forecast, citing lower commodity prices and weak wage growth.?    The leading index for Japan, which measures future economic activity, decreased more-than-expected to the weakest level in nearly three years in December, preliminary figures from the Cabinet Office showed. The leading index fell to 102.0 in December from 103.2 in the previous month. Economists had forecast the index to drop to 102.7.    Europe    European stocks opened on a mixed note but have been seeing volatility, as traders digested the U.S. non-farm payrolls report d. A couple of disappointing earnings reports and weak German factory orders are also leading to caution.    In major corporate news, ArcelorMittal (MT) reported a loss for its fiscal year, hurt by falling commodity prices. French bank BNP Paribas reported fourth quarter profits that were below estimates by analysts. However, BG Group, which is set to be taken over by Shell (RDS), reported a pre-tax profit for its full year.     On the economic front, German factory orders declined more than expected in December, provisional data from Destatis showed.? Orders fell 0.7 percent month-over-month in December, marking the first decrease in three months. The pace of decline was faster than the 0.5 percent drop forecast by economists.    U.S. Economic Reports    The Labor Department reported that non-farm payrolls expanded by 151,000 in January compared to the downwardly revised gain of 262,000 jobs for December. Economists had expected the economy to have added 188,000 jobs, a slowdown from the run rate of 292,000 reported initially for the previous month.

Revised published for 2015 showed a net gain of 85,000 over the previouly published increase.

The jobless rate edged down 0.1 percentage points to 4.9 percent compared to expectations for a 5 percent rate. Private payrolls expanded by 158,000, with goods producing sector adding 40,000 jobs, while the pace of job gains in the service sector slowed to 118,000 from 197,000. Manufacturing jobs rose by 29,000. Average hourly earnings rose 0.48 percent month-over-month to $25.39.   With imports rising and exports falling, the Commerce Department released a report showing that the U.S. trade deficit widened more than expected in December.   The report said the trade deficit widened to $43.4 billion in December from a revised $42.2 billion in November. The deficit has been expected to widen to $43.0 billion. ?  Exports fell 0.9 percent month-over-month compared to a steeper 1.7 percent decline in imports. The goods deficit fell by $2.3 billion, while the surplus on trade in services edged down?by?$0.1 billion. The real goods deficit decreased?by?$1.4 billion to $59.6 billion in November.?    The Federal Reserve will release its consumer credit report for December at 3 pm ET. The consensus estimate calls for a $16.5 billion increase in outstanding consumer credit for the month.    In November, outstanding consumer credit increased by $14 billion from the previous month. Revolving credit tied to credit cards rose sharply, while non-revolving credit, which includes auto and student loans, increased more modestly.  ?  Stocks in Focus    News Corp. (NWSA) reported lower than expected fourth quarter adjusted earnings per share but revenues beat expectations.    LinkedIn (LNKD) reported better than expected fourth quarter adjusted earnings per share, but its outlook for the first quarter and the full year was disappointing.    Symantec (SYMC) reported better than expected non-GAAP earnings per share for the third quarter despite revenues dropping year-over-year. The company's fourth quarter guidance was in line. Separately, the company also announced a $500 million strategic investment by Silver Lake, while its board approved a $4 per share special dividend and a new $5.5 billion stock buyback program.    NETGEAR (NTGR) reported better than expected fourth quarter results, while its first quarter revenue guidance was lackluster.    Lions Gate (LGF) reported below-consensus adjusted earnings per share and revenues for its third quarter.    Deckers Outdoor (DECK) reported better than expected third quarter earnings per share, while its sales trailed estimates. The company's 2016 guidance was weak.    DeVry's (DV) second quarter adjusted earnings per share exceeded estimates, while its revenues fell short. The guidance for the third quarter and the full year was in line.    Genworth (GNW) unexpectedly reported an operating loss for its fourth quarter.    Hanesbrands' (HBI) fourth quarter adjusted earnings trailed estimates and its net sales were also below estimates. The company's 2016 revenue guidance was weak.    Among insurers, Hanover (THG) and Hartford Financial (HIG) reported better than expected fourth quarter operating profit per share.