After moving mostly lower over the course of the four previous sessions, stocks are likely to regain some ground in early trading on Friday. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 130 points.
The markets are likely to benefit from the release of a report from the Labor Department showing stronger than expected U.S. job growth in the month of July.
The Labor Department said non-farm payroll employment increased by 163,000 jobs in July following a downwardly revised increase of 64,000 jobs in June.
Economists had expected employment to increase by about 100,000 jobs compared to the addition of 80,000 jobs originally reported for the previous month.
Despite the job growth, the unemployment rate edged up to 8.3 percent in July from 8.2 percent in June. The increase surprised economists, who had expected the unemployment rate to come in unchanged.
Peter Boockvar, managing director at Miller Tabak, said, "As measured by the payroll survey, the job creation in July was encouraging in light of the growing signs of economic slowdown but wasn't equally matched by the very volatile household survey which fell and was the main factor in the rise in the unemployment rate."
"In terms of impacting Fed policy, this data point will unlikely affect their desire to do more in September if the economy doesn't get any better from here," he added.
The monthly jobs report is likely to overshadow a report from the Institute for Supply Management on activity in the service sector in the month of July.
by RTT Staff Writer
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