Dow futures retreat ahead of crucial jobs report

Investing.com — U.S. stock futures slipped lower Friday, with sentiment weak ahead of the release of the widely-watched monthly official jobs report.

By 06:35 ET (11:35 GMT), the contract was down 105 points, or 0.3%, traded 15 points, or 0.3%, lower and dropped 65 points, or 0.4%.

The main equity indices have suffered a disappointing start to the year, giving back some of the strong rally seen at the end of 2023 and on course to break nine-week winning streaks. 

The blue-chip is on track to close the week 0.7% lower, the broad-based down 1.7%, and the tech-heavy is set to fall a hefty 3.3%.

Nonfarm payrolls loom large

Wall Street has retreated as investors have repriced the likelihood of Federal Reserve rate cuts early in the new year following signs of economic resilience, particularly in the important labor market.

Data released earlier this week showed hiring by in December far outpaced expectations and fell to an almost three-year low. 

The monthly jobs report due later in the session is always closely followed, but these strong numbers have increased its significance in terms of driving near-term risk sentiment.

Economists estimate that U.S. rose by 170,000 last month, down from 199,000 in November. are projected to have increased at a monthly pace of 0.3%, decelerating marginally from the previous reading of 0.4%. The , meanwhile, is anticipated to come in at 3.8%, up from 3.7%.

Tesla (NASDAQ:) recalling vehicles in Chinese 

In the corporate sector, Apple (NASDAQ:) is likely to be in the spotlight after Foxconn, a major assembler of the tech giant’s flagship iPhone smartphone, warned that it anticipates a year-on-year decline in first quarter revenue, following weaker demand in the previous three-month period.

Tesla is undertaking an effective recall on 1.62 million vehicles in China, including its models S, X, 3 and Y, the market regulator said on Friday. This follows recalls by the automaker in the United States in December.

Crude on course for weekly gains

Oil prices edged higher Friday, with the focus remaining on the unrest in the Middle East and the potential for supply disruptions.

By 06:35 ET, the futures traded 0.6% higher at $72.63 a barrel, while the contract climbed 0.4% to $77.88 a barrel.

Both benchmarks are on course to end the first week of the year around 1% higher amid ongoing concerns over Yemen’s Iran-backed Houthis targeting shipping in the Red Sea.

However, gains have been limited by data showing a massive build in U.S. oil product inventories in the final week of 2023. The reading indicated that demand remained weak in the world’s largest fuel consumer.

Additionally, traded 0.2% lower at $2,045.65/oz, while traded 0.3% lower at 1.0913.

(Oliver Gray contributed to this article.)