U.S. stock futures fall
ahead of jobs report
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[December 02, 2016]
By Yashaswini Swamynathan
(Reuters) -
U.S.
stock index futures fell on Friday on expectations of a strong jobs
report, which would confirm an interest rate hike in the coming weeks.
A report from the U.S. Labor Department is expected to show that 175,000
jobs were added in the public and private sectors in November, compared
with 161,000 added the previous month. The data, due at 8:30 a.m. ET
(1330 GMT), is also likely to show that unemployment rate remained
steady at 4.9 percent last month.
Strength in the labor market and improving inflation are two factors
that influence the Federal Reserve's decision on raising interest rates.
The central banks' policy-setting committee meets on Dec. 13-14.
The Fed has been preparing the markets for a rate hike in the backdrop
of strong economic data, including gains in consumer spending, inflation
and manufacturing.
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President-elect Donald Trump's promise of fiscal stimulus may contribute
to a rise in inflation, bolstering the prospects for higher rates.
Traders have currently priced in a 92.4 percent chance of a hike this
month, according to Thomson Reuters data.
The Dow ended with a record close on Thursday, riding on gains in banks
and oil stocks.
However, the S&P 500 recorded two straight days of losses for the first
time since the vote, pointing to a fizzling post-election rally.
Fed Board Governor Lael Brainard is scheduled to speak at an event in
Washington at 8:45 a.m. ET. Fellow board Governor Daniel Tarullo and
Cleveland Fed President Loretta Mester will speak at separate events.
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![](../images/120216pics/busine43.jpg)
Traders work on the floor of the New York Stock Exchange (NYSE) in
New York City, U.S., November 29, 2016. REUTERS/Brendan McDermid
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Oil prices fell 1.5 percent, pausing a two-day rally that had sent
prices to a more than 16-month high.
Starbucks fell 3.13 percent to $56.68 in premarket trading after
the coffee chain operator said Howard Schultz would step down as chief
executive officer.
Ulta Salon rose 6.24 percent to $273.46 after the company reported
quarterly revenue above analysts' expectations.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil
D'Silva)
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