Stocks May Open Lower On Upbeat Jobs Data - U.S. Commentary

(RTTNews) - Stocks may move to the downside in early trading on Friday following the release of the closely watched monthly jobs report. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 37 points.

The downward momentum for the markets comes after the Labor Department released a report showing much stronger than expected job growth in the month of October.

While the strong job growth is a positive sign for the U.S. economy, the data increases the likelihood the Federal Reserve will raise interest rates next month.

The report said non-farm payroll employment jumped by 271,000 jobs in October following a downwardly revised increase of 137,000 jobs in September.

Economists had expected an increase of about 185,000 jobs compared to the addition of 142,000 jobs originally reported for the previous month.

The strong job growth helped push the unemployment rate down to 5.0 percent in October from 5.1 percent in September, matching economist estimates.

With the modest decrease, the unemployment rate fell to its lowest level since hitting a matching rate in April of 2008.

The focus on the jobs report was intensified by Federal Reserve Chair Janet Yellen's recent comments about interest rates.

In testimony before the House Financial Services Committee on Wednesday, Yellen said a December rate hike would be a "live possibility" if the incoming economic data supports such a move.

Among individual stocks, shares of Disney (DIS) are likely to be in focus after the entertainment giant reported better than expected fourth quarter adjusted earnings but on revenues that were shy of estimates.

Restaurant chain Shake Shack (SHAK) is moving sharply higher in pre-market trading after reporting third quarter results that beat estimates and providing upbeat sales guidance.

On the other hand, shares of Men's Wearhouse (MW) are likely come under pressure after the clothing retailer slashed its third quarter and full-year profit outlook

After seeing some early volatility, stocks turned in a relatively lackluster performance over the course of the trading day on Thursday. The major averages bounced back and forth across the unchanged line before closing modestly lower.

The Dow attempted to cling to a slim gain going into the close but ended the day down 4.15 points or less than a tenth of a percent at 17,863.43. The Nasdaq slipped 14.74 points or 0.3 percent to 5,127.74, and the S&P 500 edged down 2.38 points or 0.1 percent to 2,099.93.

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan's Nikkei 225 Index advanced by 0.8 percent, while Hong Kong's Hang Seng Index dropped by 0.8 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has fallen by 0.9 percent, the U.K.'s FTSE 100 Index and the German DAX Index are down by 0.4 percent and 0.3 percent, respectively.

In commodities trading, crude oil futures for December delivery are slipping $0.07 to $45.13 a barrel after sliding $1.12 to $45.20 a barrel on Thursday. An ounce of gold is currently trading at $1,092.10, down $12.10 from the previous session's close of $1,104.20. On Thursday, gold fell $2.

On the currency front, the U.S. dollar is trading at 122.75 yen compared to the 121.75 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0740 compared to yesterday's $1.0884.