By Anora Mahmudova and Carla Mozee, MarketWatch
Bally Technologies soars on deal with Scientific Games
NEW YORK (MarketWatch) -- U.S. stock futures further trimmed
their losses after weaker-than-expected jobs report, as it eased
fears that the Federal Reserve might raise interest rates sooner
that investors had been expecting.
The economy added 209,000 jobs in July while the unemployment
rate ticked up to 6.2%, as more people entered the labor force in
search of work, the government reported.
Futures for the Dow Jones Industrial Average (DJU4) were 13
points lower at 16,479, while those for the S&P 500 index
(SPU4) were off 2 points, or 0.1%, to 1,922.70. Futures for the
Nasdaq 100 index (NDU4) were flat at 3,884.25.
Investors also are reacting to comments from two Fed policy
makers.
Richard Fisher, the president of the Dallas Fed and a voting
member on the Fed's rate committee, said on an interview with CNBC
said the central bank is now closer to raising rates after its
two-day policy meeting that ended Wednesday. But Charles Plosser,
the president of the Philadelphia Fed, said interest rates are
"well behind" what is appropriate.
Also fresh in the mind of investors is Thursday's selloff that
left the S&P 500 (SPX) down 2%, and the Dow Jones Industrial
Average (DJI) down 317 points. The Dow is now lower for the
year.
Triggers for the selloff included a quarterly rise in the U.S.
employment cost index, on a larger-than-expected increase in wages.
Higher wages could push up inflation and prompt the Federal Reserve
to raise interest rates.
The rise in the ECI reading drove "a general lack of risk
appetite around the market," said Richard Perry, market analyst at
Hantec Markets, in emailed comments. Need to Know for Friday: Don't
be a hero and a call for the S&P 500 to hit 2,500
Other data due Friday include consumer sentiment and
manufacturing activity in July, and monthly auto sales.
Company news
Procter & Gamble (PG) topped profit estimates, and shares
rose nearly 2% in premarket.
Shares of Mobileye (MBLY), which makes camera-based
driver-assistance systems in cars, will make their trading debut on
the New York Stock Exchange. The shares late Thursday priced at $25
a share, above an expected range of $21 to $23 a share. Also read:
Four things to know about Mobileye.
GoPro Inc. (GPRO) shares fell 10% in premarket trade. The
camcorder maker posted better-than-expected second-quarter results
late Thursday, but the shares fell, giving back some of their 30%
increase since their June debut.
Deal news sent shares of Bally Technolgoies Inc. (BYI) up 33% in
premarket. Shares of Scientific Games Corp. (SGMS) eased 3% after
it announced plans to buy Bally in a deal worth around $5.1
billion.
In Europe, stocks were down, but generally well off their lows
after the jobs data. In Asia, Japan's Nikkei Average lost 0.6%.
Crude-oil futures (CLU4) lost ground, and gold futures (GCU4)
advanced just over $1 an ounce. The ICE U.S. Dollar index (DXY) was
at 81.482, up from 81.446 on Thursday.
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