Stocks Pause With All Eyes on Jobs

By Saumya Vaishampayan 

        Investors refrained from making major moves Friday ahead of a key report on the U.S. job market.
        Anticipation for the Labor Department's July employment report, expected at 8:30 a.m. EDT Eastern, has escalated throughout the week as investors seek guidance on the timing of the first increase in U.S. interest rates in nearly a decade. Fed officials last month said they are looking for further improvement in the labor market before making such a move.
        Economists surveyed by The Wall Street Journal forecast nonfarm payrolls grew by 215,000 last month, while the unemployment rate remained at 5.3%.
        The Fed has signaled its eventual increases in interest rates will be gradual and dependent on economic data. Still, some stock investors are anxious about how the market will adjust to slightly higher rates, since the central bank's low-rate policy has helped fuel a rally in stocks since the financial crisis.
        Moves across stock markets were muted in anticipation of the report. S&P 500 futures slipped four points, or 0.2%, to 2076.
        Japan's Nikkei Stock Average added 0.3%, while Hong Kong's Hang Seng Index rose 0.7%. In Europe, the Stoxx Europe 600 shed 0.4%, in line with slight losses in French and German markets.
        "Sooner or later the Fed is going to start raising interest rates," said Colin Cieszynski, chief market strategist at CMC Markets. While stock swings could pick up amid the transition to higher rates, in the longer run such a move is bullish for stocks, he said. "Interest rate rises reflect the growing economy, and the growing economy is good for corporate earnings and good for stocks," Mr. Cieszynski added.
        In commodity markets, gold futures were nearly flat at $1090.20 an ounce. Crude-oil futures slipped 0.1% to $44.60 a barrel.
        The yield on the 10-year Treasury note fell to 2.214% from 2.236% on Thursday. Yields decline as prices rise.
        Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
        (END) Dow Jones Newswires

        August 07, 2015 08:16 ET (12:16 GMT)

#FX
#StocksPause
#WithAllEyes
#OnJobs
#SalesForex