With a disappointing employment report adding to recent concerns about the economic outlook, stocks are likely to move sharply lower at the start of trading on Friday. The major index futures are currently indicating a steep drop at the open, with the Dow futures down by 144 points.
The downward momentum comes following the release of a report from the Labor Department showing only modest job growth in the month of May as well as uptick in the unemployment rate.
The Labor Department said that the U.S. economy added just 54,000 jobs in May following the addition of 232,000 jobs in April. Economists had been expecting employment to increase by about 170,000 jobs, although recent data had suggested that the job growth was likely to miss estimates.
Additionally, the report showed that the unemployment rate unexpectedly edged up to 9.1 percent in May from 9.0 percent in the previous month.
Peter Boockvar, equity strategist at Miller Tabak, said, "Bottom line, disappointment sums it up well as the U.S. economy cannot gain any self fulfilling growth."
While the data is likely to be overshadowed by the jobs report, the Institute for Supply Management is due to release its report on service sector activity in the month of May at 10 am ET. The ISM's index of activity in the sector is expected to rise to 54.0 in May from 52.8 in April.
In corporate news, VeriFone Systems (PAY) could be in focus after the electronic payment systems maker reported second quarter adjusted earnings of $0.46 per share, above analyst estimates for earnings of $0.43 per share. The company also raised its full-year earnings and revenue guidance.
Diamond Foods (DMND) reported third quarter adjusted earnings of $0.52 per share on revenues of $223 million, while analysts expected earnings of $0.48 per share on revenues of $216.6 million. The packaged food company also boosted its full-year guidance.
Meanwhile, Newell Rubbermaid (NWL) announced that it is adopting a more conservative 2011 sales and earnings outlook in light of disappointing economic conditions and weak consumer spending trends.
With traders reluctant to make any significant moves ahead of the monthly employment report, stocks showed a lack of direction over the course of the trading day on Thursday. The choppy trading also came on the heels of the sell-off seen in the previous session.
The major averages eventually ended the session mixed, with the tech-heavy Nasdaq posting a modest gain. The Nasdaq edged up 4.12 points or 0.2 percent to 2,773.31, while the Dow fell 41.59 points or 0.3 percent to 12,248.55 and the S&P 500 slipped 1.61 points or 0.1 percent to 1,312.94.
The modest losses once again pulled the Dow and the S&P 500 down to their lowest closing levels in well over a month.
In overseas trading, stock markets in the Asia-Pacific region turned in a mixed performance on Friday amid uncertainty about the U.S. jobs report. Japan's Nikkei 225 Index fell by 0.7 percent, while China's Shanghai Composite Index advanced by 0.9 percent.
Meanwhile, the major European markets have all moved to the downside on the day. The U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.4 percent, while the French CAC 40 Index has fallen by 0.9 percent.
In commodities trading, crude oil futures are falling $1.41 to $98.99 a barrel after edging up $0.11 to $100.40 a barrel on Thursday. Gold futures, which fell $10.50 to $1,532.70 an ounce in the previous session, are currently sliding $3.20 to $1,529.50 an ounce.
On the currency front, the U.S. dollar is trading at 80.1668 yen compared to the 80.895 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.4481 compared to yesterday's $1.4491.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.