RTTNews - U.S. Stocks are set to open the new week on a downbeat note after weaker jobs report dented hopes of recovery and raised fresh concerns about the weak economic fundamentals in the world's largest economy. The strengthening of the greenback against other major currencies and lower commodity prices point to risk aversion of traders, who may shun stocks in favor of safe haven, as the second quarter reporting season looms ahead.
As of 6.30 am ET, the Dow Futures were down 86 points, the S&P Futures were down 9.80 points, and the Nasdaq 100 futures were down 13.00 points.
Thursday, stocks ended sharply lower following disappointing employment data from the Labor Department which showed that non-farm payroll employment fell by 467,000 jobs in June following a revised decrease of 322,000 jobs in May. The unemployment rate edged up to 9.5 percent in June from 9.4 percent in May. Following disappointing jobs report, traders largely shrugged off a report from the Commerce Department showing that orders for manufactured goods rose 1.2% in May following a downwardly revised 0.5% increase in April.
The Dow closed down by 223.32 points or 2.6% at 8,281, the Nasdaq fell by 49.20 points or 2.7% to 1,797, and the S&P 500 closed down 26.91 points or 2.9% at 896.
Traders may look forward to the Institute for Supply Management's report on activity in the service sector for June. The index is expected to show a modest improvement from the month-ago levels, although it is still expected to remain in the contraction zone.
Beleaguered automaker General Motors (GM) has been granted permission by the U.S. Court to sell most of its assets to a U.S Treasury-funded buyer.
Food and beverage giant PepsiCo Inc. (PEP), together with its bottling partner Pepsi Bottling Group Inc. (PBG), announced its plans to invest US$1 billion in Russia over three years.
Bemis Company, Inc. (BMS), a supplier of flexible packaging and pressure sensitive materials, said it would take over the Food Americas division of Alcan Packaging for $1.2 billion. Paris, France-headquartered Alcan is a business unit of Anglo-Australian mining giant Rio Tinto
On the economic front, the results of the latest Sentix survey revealed that the headline indicator for Eurozone unexpectedly fell to minus 31.3 in July from minus 27 in June. Economists were expecting the index to rise to minus 25.
The markets across Europe markets are trading in the negative territory following softening of the commodity prices. The CAC-40 Index in of France is down 1.73%, the DAX Index in of Germany is receding 1.65% and the FTSE in of the U.K is losing 1.32%.
Light sweet crude oil prices for August delivery is down $2.88 a barrel and is quoted at $63.85, on concerns about growth. The US dollar is showing strength against the major counterparts including the Euro, the British Pound and the Japanese Yen.
The markets across the Asia-Pacific region ended in the negative territory as traders preferred to adopt a wait-and-watch approach after disappointing jobs report dented hopes of recovery. , and await clues from the upcoming earnings season.
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