US non-farm payrolls data is expected to show a decline in job
creation from April to May.
However, May's figures are still expected to be solid with
210,000 new jobs to have been created. April's increase of 288,000
was the US' strongest increase in over two years, but the data was
attributed to delayed hiring due to the unusually cold winter.
In May, the pent-up demand for labor is expected to wane leaving
a more realistic picture of actual job growth for last month.
In other news around the markets:
In a statement to employees,
CEO Mary Barra announced that she had fired fifteen employees who
responded inappropriately to the ignition switch defects or were
involved in some type of misconduct. Barra said she intends to turn
the company's corporate culture around as it has created what she
called a "pattern of incompetence and neglect."
Bank of America
is offering to pay $12 billion in order to settle probes by
the Justice Department into its handling of questionable mortgages.
Around $5 billion will be used to relieve strained customers by
reducing their monthly payments or decreasing their principal
amount. Many expect that the bank will end up with penalties of
more than the $13 billion that
JP Morgan Chase & Co
was made to pay last year.
On Thursday, the Pentagon reported that the Chinese military was
beefing up its arsenal with newly advanced drones, warships, jets,
missiles and even cyber weapons. The US estimated China's military
spending at over $145 billion in 2013, far surpassing Beijing's
official total of $119.5 billion. China's Defense Ministry
responded with a statement on its website saying that the
Pentagon's report was erroneous. With several world leaders
including Ukraine's Petro Poroshenko, Russia's Vladimir Putin
and United States President Barack Obama set to attend the
commemoration of D-Day landings in France on Friday, many are
hoping that informal talks about the ongoing crisis in Ukraine
could be a first step in easing the nation's tension. Late on
Thursday there were reports of further casualties after separatists
attacked a border post in the eastern part of the country. The
attack wounded five Ukrainian soldiers, but killed 15 separatists
when an air strike was eventually employed to fend off the attack.
Asian markets were mostly lower; the NIKKEI fell 0.01 percent,
the Shanghai composite lost 0.54 percent and the Shenzhen composite
was down 0.45 percent. The Hang Seng index was 0.69 percent lower,
the KOSPI fell 0.65 percent, but the ASX 200 and the NZ 50 were up
0.50 percent and 0.44 percent respectively.
European markets were up across the board; the UK's FTSE gained
0.32 percent, the STOXX 600 rose 0.26 percent, the DAX was up 0.19
percent and the IBEX gained 0.56 percent.
Energy futures were mixed; Brent futures gained 0.20 percent and
WTI futures were down 0.03 percent. Gold and silver gained 0.11
percent and 0.19 percent respectively and industrial metals were
lower with the exception of copper, which gained 0.73 percent.
Aluminum was up 0.82 percent, zinc gained 0.42 percent and tin was
up 0.09 percent.
The euro was steady at $1.3630 on Friday morning after a roller
coaster day on Thursday. The common currency lost 0.31 percent
against the yen and 0.12 percent against the pound. The dollar was
moderately lower against the yen, down 0.06 percent, but gained
0.20 percent against the franc and 0.10 percent against the
Notable earnings released on Thursday included:
Joy Global (NYSE:
) reported second quarter EPS of $0.76 on revenue of $930.00
million, compared to last year's EPS of $1.73 on revenue of $1.36
billion. JM Smucker Company (NYSE:
) reported fourth quarter EPS of $1.21, compared to last year's EPS
of $1.29 on revenue of $1.34 billion. UTi Worldwide (NASDAQ:
) reported a first quarter loss of $0.43 on revenue of $l.04
billion, compared to last year's loss of $0.02 on revenue of $1.08
billion. Thor Industries (NYSE:
) reported third quarter EPS of $1.03 on revenue of $1.05 billion,
compared to last year's EPS of $0.92 on revenue of $1.05 billion.
Stocks moving in the Premarket included:
General Electric (NYSE:
) gained 0.41 percent in premarket trade after rising 0.83 percent
on Thursday. Bank of America (NYSE:
) lost 0.97 percent in premarket trade after rising 1.45 percent on
Thursday. Transocean Ltd (NYSE:
) was down 0.57 percent in premarket trade after a week of choppy
trading took the stock down 0.12 percent.
No notable earnings releases expected on Friday.
US non-farm payrolls data will be the highlight of Friday's
economic calendar, with most expecting to see a solid performance
following April's unexpectedly high figures. Other notable releases
include the German trade balance, the French trade balance, Spanish
industrial production, the British trade balance and US consumer
For a recap of Thursday's market action, click .
Tune into Benzinga's #PreMarket Prep to hear Alan Brochstein,
Jacqueline Ko Matthews and Kiana Danial by clicking
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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