By Anora Mahmudova and Sara Sjolin, MarketWatch
Economy adds 252,000 jobs in December, unemployment rate at
5.6%
NEW YORK (MarketWatch) -- U.S. stock futures were pointing to a
slightly positive open, reversing earlier losses, after Friday's
strong jobs report underlined an improving labor market.
The headline numbers were much better than expected, though the
details were less than stellar.
The economy added 252,000 jobs last months, while November's
number was revised upward. The unemployment rate ticked down to
5.6%, but the wage growth decelerated -- an indication the U.S.
economy is not shifting into a higher gear despite the upsurge in
new jobs.
Futures for the Dow Jones Industrial Average (DJH5) were 9
points, or 0.1%, higher at 17,830, while those for the S&P 500
index (SPH5) were up 2 at 2,057. Futures for the Nasdaq 100 index
(NDH5) added 11 points, or 0.3%, to 4,243.
Michael Arone, chief investment strategist for State Street
Global Advisors' U.S. Intermediary Business, said the lack of wage
growth last month puts the Federal Reserve between a rock and a
hard place.
"The headline numbers were great and on surface appear that the
Fed has achieved its unemployment goal, but the lack of wage growth
concerns policy-makers, as it means that their other mandate --
inflation -- will continue to stay below target," Arone said.
"Still, I would argue that wage growth is on the horizon and we
may begin to see it next month as 25 states increased their minimum
wages," he added.
Also read: How economists are assessing the jobs report
Friday's cautious trading came after a stellar performance on
Thursday, when the Dow average posted its biggest gain in three
weeks. The surge was spurred by dovish comments from Federal
Reserve Bank of Chicago President Charles Evans, who advised the
Fed shouldn't raise interest rates until 2016.
Markets might get more clues on monetary policy later on Friday,
when Richmond Fed President Jeffrey Lacker discusses the 2015
economic outlook at 1:20 p.m. Eastern Time, in Richmond,
Virginia.
ECB news: European stocks were lower, after Bloomberg reported
the ECB's Governing Council was presented with models for buying as
much as 500 billion euros ($592.68 billion) of AAA-rated debt or
bonds rated at least BBB+.
Movers and shakers:Macy's Inc.(M) fell ahead of the bell after
the retailer late Thursday said it aims to save $140 million a year
by restructuring its merchandising and marketing operations. The
overhaul is likely to result in store closures.
Wet Seal Inc.(WTSLA) slumped 31% premarket after The Wall Street
Journal reported the teen retailer has hired restructuring lawyers,
and cited sources saying a bankruptcy filing could come next
week.
Clothing retailer Gap Inc.(GPS) was also in the spotlight after
it said late Thursday its comparable sales rose 3% for the November
and December holiday-shopping season.
Luxury-shoe designer Steve Madden Ltd.(SHOO) may be active after
it said it expects 2014 per-share earnings of $1.75 to $1.76, below
the current FactSet consensus of $1.84.
Conatus Pharmaceuticals Inc.(CNAT) slumped 42% ahead of the
open, after the small company said it has stopped a clinical trial
of a liver drug due to the "logistical challenges" of following
patients with acute-on-chronic liver failure in the trial.
Spectrum Brands Holdings Inc.(SPB) said Friday Chief Executive
David Lumley is planning to retire by the end of 2015.
Other markets: Asian markets closed mixed, while European
indexes were mostly lower after a sharp rally on Thursday.
Oil futures swung between small gains and losses, while most
metals prices were on the rise. The dollar declined against most
major currencies.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires