The decline in futures suggested that Thursday's dramatic selloff -
the biggest for Wall Street in months - was poised to continue. That
weakness came after data sparked worries the U.S. Federal Reserve
could raise interest rates sooner than some have expected.
Analysts expect 233,000 jobs to have been added in July, with the
unemployment rate holding at 6.1 percent. The nonfarm payroll report
will be released at 8:30 a.m.
The Fed has kept overnight rates near zero since December 2008, but
at its meeting on Wednesday it took note of both faster economic
growth and a decline in the unemployment rate, while expressing
concern about remaining slack in the labor market.
Electric car maker Tesla Motors Inc <TSLA.O> posted second-quarter
revenue that nearly doubled from the prior year, while its adjusted
earnings topped expectations. Still, shares fell 1.9 percent to $219
in premarket trading. GoPro Inc <GPRO.O> shares tumbled 11 percent
to $42.65 before the bell a day after reporting a bigger
second-quarter net loss, pressured by rising costs.
On the upside, LinkedIn Corp <LNKD.N> rose 6.5 percent to $192.40 in
premarket trading a day after forecasting better-than-expected
results in the current quarter.
S&P 500 e-mini futures fell 11 points and were below fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract. Dow Jones
industrial average e-mini futures fell 96 points and Nasdaq 100
e-mini futures lost 24.25 points.
Thursday's decline was the biggest one-day drop for the S&P since
April, and it erased monthly gains for the S&P, Nasdaq and Dow,
which also turned negative for the year. The S&P closed under its
50-day moving average for the first time since April 15, a sign of
weak near-term trends.
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For the week, the Dow is down 2.3 percent, the S&P is down 2.4
percent and the Nasdaq is down 1.8 percent. It is the biggest weekly
decline for all three since April.
Traders also await the final July read on manufacturing from
financial data firm Markit, due at 9:45 a.m., as well as the final
July read on consumer sentiment from the Thomson Reuters/University
of Michigan Surveys of Consumers, due 10 minutes later and seen
rising to 82 from 81.3.
At 10:00 a.m., the Institute for Supply Management's read on July
manufacturing is due and is seen rising slightly, while June
construction spending is seen rising 0.5 percent.
Investors to pay close attention to issues abroad a day after
Argentina defaulted on its debt for the second time in 12 years.
Violence continued in the Gaza Strip and separately, news agencies
reported that Russia may restrict Greek fruit and U.S. poultry in
what could be responses to new Western sanctions over Ukraine.
(Editing by Bernadette Baum)
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