By Mark DeCambre, MarketWatch
Dow industrials erased most of a 785-point drop on Thursday in a
wild session
All three U.S. benchmarks on Friday were poised to fall ahead of
a key employment report that could help determine the rate-hike
plans for the Federal Reserve.
How are the benchmarks performing?
Futures for the Dow Jones Industrial Average were off 133
points, or 0.5%, at 24,774, while S&P 500 index futures were
down 13.35 points, or 0.5%, at 2,677.75. Nasdaq-100 futures were
trading 37 points, or 0.5%, lower at 6,786.
Check out:A death cross for the S&P 500 highlights a stock
market in tatters
(http://www.marketwatch.com/story/a-looming-death-cross-for-the-sp-500-highlights-a-stock-market-in-tatters-2018-12-06)
On Thursday, the Dow declined 79.40 points, or 0.3%, to
24,947.67, though the index was down by as many as 785 points at
its nadir. The S&P 500 index dropped 4.11 points, 0.2%, to
2,696.95, and the Nasdaq Composite Index fell 29.83 points, or
0.4%, to 7,188.26.
For the week, the Dow and S&P 500 are set to show declines
of 2.3%, while the Nasdaq has thus far declined 1.9%.
Read:The Dow just slashed a 785-point plunge, marking its most
stunning reversal since March
(http://www.marketwatch.com/story/the-dow-just-slashed-a-785-point-plunge-marking-its-most-stunning-reversal-since-march-2018-12-06)
The Thursday afternoon rebound put the Dow and the S&P back
into positive territory for 2018, while the Nasdaq built on its
gains to rise 4.1% for the year.
What's driving the market?
Wall Street is awaiting a key employment report due at 8:30 a.m.
Eastern Time, with the nonfarm-payrolls report for November slated
to show that 190,000 jobs were created. A steady unemployment rate
at 3.7% is expected, with wage growth for the period rising 0.3%,
according to average estimates of economists surveyed by
MarketWatch.
The jobs data comes after a frenetic session that had been
colored by fears of intensifying trade battles between the U.S. and
China after the arrest in Canada of a top Chinese tech executive at
China telecommunications giant Huawei Technologies, which amplified
worries in a market already skittish about relations between
Beijing and Washington on tariffs and intellectual-property
rights.
Read:Huawei arrest creates concerns in Silicon Valley as well as
abroad
(http://www.marketwatch.com/story/huawei-arrest-creates-concerns-in-silicon-valley-as-well-as-abroad-2018-12-06)
Those fears combined with a persistent drop in crude-oil prices
have made investors particularly on edge, fretting that global
economic growth is imperiled.
Against that backdrop, the jobs report may provide more clarity
on where Jerome Powell's Federal Open Market Committee will stand
on monetary policy when he convenes a two-day policy meeting Dec.
18-19.
Signs that the FOMC may take a less aggressive tack in
normalizing rates have increased, with The Wall Street Journal on
Thursday reporting that Fed officials are considering a new
wait-and-see mentality
(https://www.wsj.com/articles/restrained-inflation-reduces-urgency-for-quarterly-rate-increase-pattern-1544127856?mod=searchresults&page=1&pos=1)
at that December meeting.
Expectations for a December interest-rate increase are showing a
73% probability, down from 83% a week ago, according to CME Group
data, with expectations increasing that policy makers may cool the
rate-hike path in 2019.
Which stocks are in focus?
Shares of Big Lots Inc.(BIG) are trading down more than 13%
before the bell Friday, after wider-than-expected third-quarter
loss.
Shares of Broadcom Inc. (AVGO) are in focus after the chip maker
announced fiscal fourth-quarter profits and sales Thursday evening
that topped Wall Street expectations. The stock is up 4% in
premarket action Friday.
Ulta Beauty Inc. (ULTA) shares are down 6.8% in premarket trade
Friday, after a Thursday evening earnings release that predicted
weaker holiday sales that analysts hoped.
Shares of Altria Group (MO)are in focus after the company
announced it would take a 45% ownership stake in the cannabis-firm
Cronos Group Inc. (CRON.T), worth $1.8 billion. The stock is up
1.8% in premarket action, while trading of Cronos stock was halted
and will resume at 7:45 a.m. Eastern.
What other data and Fed speakers are ahead?
How are other markets trading?
Asian markets traded mostly higher Friday
(http://www.marketwatch.com/story/asian-markets-inch-forward-amid-us-china-friction-2018-12-06),
with the Nikkei 225 rising 0.8% and markets in South Korea and
Australia advancing on the day. The Shanghai Composite Index was
virtually flat, with gains of less than 0.1%.
European markets were also trading higher Friday, with both the
Stoxx Europe 600 and the FTSE 100 in the green.
(END) Dow Jones Newswires
December 07, 2018 07:34 ET (12:34 GMT)
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