The major U.S. index futures are pointing to a lower opening on Friday, with the worse than expected decline in non-farm payrolls likely to trigger some anxiety, leading to a negative open on Wall Street. Although the markets had discounted the decline associated with the layoff of temporary workers hired for census, additions to private payrolls was weaker than expected. With earning season on the verge of entering the last leg, attention now shifts to Main Street and the uncertainty surrounding the economic condition is likely to be an irritant for the markets.
Worried about instability in the job market, U.S. stocks opened Thursday's session lower and languished below the unchanged line throughout the session. However, the major averages closed well off the lows of the session.
The Dow Industrials ended down 5.45 points or 0.05% at 10,675 and the Nasdaq Composite slipped 10.51 points or 0.46% to close at 2,293, while the S&P 500 Index closed 1.43 points or 0.13% lower at 1,126.
The breadth among the Dow components was almost even, with sixteen stocks closing lower, while fourteen ended in positive territory. American Express (AXP) and Pfizer (PFE) were the biggest decliners in the session, while Caterpillar (CAT) rose over 1%.
Currency, Commodity Markets
Crude oil futures are moving down $0.85 to $81.16 a barrel after retreating $0.46 to $82.01 a barrel on Thursday. Gold futures, which rose $3.40 to $1,199.30 an ounce in yesterday's session, are currently adding $0.70 to $1,200 an ounce.
Among currencies, the U.S. dollar is trading at 85.235 yen compared to the 85.8198 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.3253 compared to yesterday's $1.3188.
Asia
The major Asian markets closed Friday's session on a mixed note, with the Japanese closing lower and the South Korean market closing slightly lower, while the Australian and Hong Kong market closed higher. The Chinese market rallied rally sharply, advancing 1.44%.
Japan's Nikkei 225 average opened sharply lower, but it recouped much of its losses over the course of the session to close down merely 11.80 points or 0.12% at 9,642. A report released by Japan's Cabinet Office showed that its leading index for Japan rose to 98.9 in June from 98.6 in the previous month. Economists had expected a reading of 98.7.
After languishing in the red for the better part of the session, Australia's All Ordinaries pared back its loss over the course of the session to close up merely 1.40 points or 0.03% at 4,586. Consumer staple stocks led the advances, while energy and financial stocks gave back some ground.
Europe
The major European averages are showing weakness on Friday, with the French CAC 40 Index receding over 1%, while the German DAX Index and the U.K.'s FTSE 100 Index are declining 0.97% and 0.55%, respectively.
In corporate news, Royal Bank of Scotland reported a profit of 9 million pounds for the six-month period compared to a loss of 1.04 billion pounds in the year-ago period.
On the economic front, a report released by the U.K. Office for National Statistics showed that manufacturing output in the U.K. rose 0.3% month-over-month in June, the same rate of increase as in May. Economists had expected a 0.4% increase. A separate report released by the agency showed that output prices in the U.K. rose 0.1% in July, reversing the 0.3% drop in the previous month.
Meanwhile, a government report revealed that manufacturing output in Germany fell 0.6% on a monthly basis in June following a revised 2.9% increase in May, marking the first drop in four months.
U.S. Economic News
The Labor Department reported that the U.S. economy shed 131,000 jobs in July, steeper than the 87,000 job losses expected by economists. While federal government employment fell by 143,000, reflecting the lay-off of temporary workers hired for Census-related work, private sector employment rose by 71,000.
The unemployment rate calculated based on the household survey remained unchanged at 9.5% in July. The civilian participation rate was also largely unchanged at 64.6%. The average workweek rose by 0.1 hour to 34.2 hours, but average hourly earnings rose by 0.2% month-over-month and 1.8% annually to $22.59.
The U.S. Federal Reserve is expected to release its monthly consumer credit report at 3 PM ET. Consumer credit for June is likely to show a decline of $5.7 billion.
In May, consumer credit declined by a bigger than expected $9.1 billion, sharply lower than the $3 billion decline expected by economists. More importantly, April's reading was revised to a decline of $14.9 billion from the $1 billion increase estimated initially. Revolving credit tied to credit card loans fell by $7.3 billion in May, while non-revolving credit tied to auto loans dipped by $1.8 billion. Consumer credit outstanding is currently at $2.415 trillion, its lowest level since March 2007.
Stocks in Focus
Public Storage (PSA) reported second quarter net income of 36 cents per share, lower than 80 cents per share last year. The company's funds from operations fell to 92 cents per share from $1.40 per share last year. Revenues slipped to $354.39 million from the year-ago's $355.18 million. Analysts estimated earnings of $1.24 per share on revenues of $372.53 million.
Live National Entertainment (LYV) said its second quarter revenues fell 10% to $1.27 billion. The company reported a loss from continuing operations of 20 cents per share, narrower than the loss of 37 cents per share last year. The consensus estimates had called for a loss of 2 cents per share on revenues of $1.38 billion.
Microchip Technology (MCHP) reported first quarter earnings of 47 cents per share on revenues of $320.8 million. On an adjusted basis, the company reported earnings of 55 cents per share, ahead of the 51 cents per share consensus estimate. Analysts estimated revenues of $319.3 million.
Activision Blizzard (ATVI) reported second quarter GAAP net revenues of $683 million and non-GAAP earnings of 6 cents per share. The consensus estimated earnings of 5 cents per share on revenues of $719.8 million. For the third quarter, the company expects non-GAAP net revenues of $725 million and non-GAAP earnings of 8 cents per share, while analysts estimate earnings of 12 cents per share on revenues of $911.9 million.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.