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US Stock Futures Crash Into Red After Much Weaker Than Expected Job Growth in September

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U.S. stock futures plummeted from modest gains earlier Friday to being solidly in the red after the monthly employment report showed much weaker growth in payrolls than the markets had expected and as August payrolls were also revised lower. The disappointing report also shaved earlier gains in European markets.

In September, the nonfarm payrolls only rose by 142,000, coming in sharply below the 203,000 expected and also missing the consensus range between 180,000 and 235,000, according to data compiled by Econoday. For August, nonfarm payrolls growth was revised down to 136,000 jobs added compared to previously reported 173,000. The unemployment rate remained steady at 5.1%, as expected.

The day will also bring remarks from several Federal Reserve speakers including Federal Open Market Committee member Stanley Fischer as well as alternate FOMC members Boston Fed President Eric Rosengren, Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard.

At 10:00 a.m., data are expected to show a 1.3% decline in August factory orders from July, when it rose 0.4%. The consensus range is between a 2.4% decline and a 1.0% increase.

In equities, Micron Technology ( MU ) was higher over 4% after late Thursday reporting better-than-expected revenue, even as it fell 15% from a year ago. Capstone Turbine ( CPST ) shares were down 13% in recent pre-market trade after warning that continued headwinds in the oil and gas market and a strong U.S. dollar delayed orders and shipments in the quarter.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 0.79%

-S&P 500 futures down 0.82%

-Nasdaq 100 futures down 0.84%

-Nasdaq 100 pre-market indicator down 0.57%

GLOBAL SENTIMENT

Nikkei up 0.02%

Hang Seng up 3.17%

Shanghai Composite up 0.48%

FTSE-100 up 0.31%

DAX-30 up 0.16%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: unchanged to higher

(-) Chip stocks: unchanged to lower

(-) Software stocks: unchanged to lower

(+/-) Hardware stocks: mixed

(+/-) Internet stocks: mixed

(+/-) Drug stocks: mixed

(-) Financial stocks: lower

(+/-) Retail stocks: unchanged

(-) Industrial stocks: unchanged to lower

(+/-) Airlines: unchanged

(+/-) Autos: mixed

UPSIDE MOVERS

(+) WYNN (+8.5%), LVS (+5.4%), MPEL (+8.2%), MGM (+5.3%) Gain on reports China reviewing plans to boost Macau economy

(+) S (+5.3%) Reportedly cutting workforce and at least $2 billion in other costs

DOWNSIDE MOVERS

(-) O (-2.4%) Prices stock offering at 1% discount, to raise $468.8 million in gross proceeds

(-) PRGS (-14.9%) Swings to Q3 loss, sets mixed guidance

(-) DPLO (-1.9%) Morgan Stanley downgrades to equal weight vs overweight

(-) XOMA (-6.5%) Gives up some gains made Thursday on NVS (-0.2%) licensing deal

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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