Dow Jones ahead of key jobs report

Investing.com – U.S. stock index futures fell on Friday on weaker sentiment ahead of the release of the widely watched official monthly jobs report.

As of 06:35 ET (11:35 GMT), the contract was down 105 points, or 0.3%, trading down 15 points, or 0.3%, and down 65 points, or 0.4%.

The major stock indexes got off to a disappointing start to the new year, giving back some of their strong late-2023 rebounds and on track to snap a nine-week winning streak.

The index was expected to end the week down 0.7%, with the actual index falling 1.7% and the expected index plunging 3.3%.

Wall Street retreated as investors repriced the possibility of the Federal Reserve cutting interest rates at the start of the new year amid signs of economic recovery, particularly in the key labor market.

Data released earlier this week showed hiring activity far exceeded expectations in December and fell to its lowest level in nearly three years.

The monthly jobs report at the end of the session is always closely watched, but these strong numbers increase its importance in driving near-term risk sentiment.

Economists estimate the U.S. grew by 170,000 last month, down from 199,000 in November, with monthly growth expected at 0.3%, down slightly from zero (4%) previously. Meanwhile, it is expected to be 3.8%, up from 3.7%.

In the enterprise space, Apple (NASDAQ: AAPL) may be in the spotlight as Foxconn, the main assembler of the tech giant’s flagship iPhone smartphone, warned that it expects sales revenue to decline year over year. Sales fell in the first quarter following weak demand in the first three months.

Tesla is effectively recalling 1.62 million vehicles in China, including S, X, 3 and Y models, following the recall in the United States in December, the market regulator said on Friday.

Oil prices edged higher on Friday as market focus remained on turmoil in the Middle East and potential supply disruptions.

Futures were up 0.6% at $72.63 a barrel as of 06:35 ET, while the contract was up 0.4% at $77.88 a barrel.

Oil prices are expected to rise about 1% in the first week of the year on continued concerns about Yemen’s Iran-backed Houthi rebels targeting Red Sea shipping.

However, gains were limited as data showed U.S. petroleum products inventories rose sharply in the final week of 2023. Data shows demand remains weak in the world’s largest fuel consumer.

Additionally, it was trading down 0.2% at $2,045.65 per ounce and down 0.3% at 1.0913.