US Equity-gauge Futures Flat Before Employment Report

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US Equity-gauge Futures Flat Before Employment Report

US equity-index futures were flat, with the Standard & Poor’s 500 Index approaching a weekly rise, as players looked forward to a payroll report expected to show that employers added more than 200,000 personnel in October.

Bank of America Corp dropped early in New York trading after incorporating legal charges that offset the unexpected profit it reported last month. Walt Disney Co. plunged 1.8% after stating that profit at TV networks declined despite total earnings surpassing projections. Shares for Zynga Inc. and King Digital Entertainment Plc jumped after posting quarterly sales that beat estimates.

December-expiry futures on the S&P 500 dropped 0.1% to 2,026.9 at 11:36 am in London. The stocks index ascended 0.7% this week, remaining on course for a third weekly gain in a row, after Democrats lost control of the senate to Republicans, and the European Union committed to increasing stimulus when necessary. Dow Jones Industrial Average futures reversed less than 2% or two points, to 17, 502 today.

“The U.S. is now data driven. I expect good figures from the employment report that will confirm that the Fed did a good thing in ending quantitative easing. But one of the consequences from that is that expectations for a rate hike in the first half of 2015 will lift higher,” Bloomberg quotes John Plassard, vice president of Geneva-based Mirabaud Securities LLP as saying.

Data released recently, such as jobless claims and the ADP National Employment report has signaled enhanced employment market conditions, but disappointing payroll data may be affect markets, especially since the Fed no longer supports market through its bond-purchasing program, Reuters reported.

Also, both the Dow and S&P 500 closed at peaks yesterday, and a disappointing jobs report could trigger investors to take profits.

For the entire week, the Dow has ascended 0.9%, the S&P has risen 0.7% and the Nasdaq has added 0.2%.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com