Futures rise with Apple ahead of jobs data

[November 03, 2017]   By Sruthi Shankar

(Reuters) - Apple's upbeat results and strong initial demand for the new iPhone X put Wall Street on track for a strong opening on Friday, while investors watched out for October jobs data for clues on the strength of the labor market.

* Apple <AAPL.O> shares surged 3 percent in premarket trading after the world's largest company by market capitalization gave a robust sales forecast for the year-end holiday shopping season.

* U.S. job growth likely rebounded sharply in October after hurricane-related disruptions depressed employment in September, in a move that could seal the case for an interest rate increase from the Federal Reserve in December even as wage growth probably slowed.

* Traders now see a 98.2 percent chance of an interest rate hike in December, according to CME Group's FedWatch tool.

* The Labor Department releases nonfarm payrolls numbers at 8:30 a.m. ET. It is likely to rebound by 310,000 jobs in October after a 33,000-jobs fall in September.

* The unemployment rate is forecast unchanged at 4.2 percent and average hourly earnings rising 0.2 percent after jumping 0.5 percent in September.

The Wall Street sign is seen outside the New York Stock Exchange, March 26, 2009. REUTERS/Chip East/Files

* President Donald Trump on Thursday tapped Fed Governor Jerome Powell to become head of the U.S. central bank, signaling a continuation of current Chair Janet Yellen's cautious monetary policies.

* In Washington, House Republicans also finally disclosed their long-delayed plans for tax cuts that Trump has promised, setting off a frantic race in Congress to give him his first major legislative victory.

* Starbucks <SBUX.O> slipped 3.4 percent after the company trimmed its profit forecast and posted disappointing sales, squeezed by competition.

* AIG <AIG.N> fell 4.3 percent after the insurer posted a bigger loss on huge catastrophe losses and said it set aside more money in reserves to meet losses related to prior-year accident claims.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

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