Dow futures fall 150 points as hot January jobs number is likely to keep the Fed in hiking mode
Stock futures slid Friday after several high-profile earnings misses cast doubt on the recent market rally, and traders digested strong U.S. labor data.
Futures for the S&P 500 lost 0.4%, while Nasdaq-100 futures fell 0.7%. Dow Jones Industrial Average futures dropped 58 points, or 0.2%.
Investors absorbed a much stronger than expected January jobs report. The U.S. added 517,000 jobs in January, up from 223,000 in December. Economists polled by Dow Jones expect a jobs gain of 187,000 last month.
Struggles of major tech stocks weighed on the market. Apple and Google-parent Alphabet both missed estimates on the top and bottom lines for their December quarters. Alphabet’s stock fell more than 3% in premarket trading, while Apple shares dipped more than 1%. Amazon’s stock also declined about 4% after the e-commerce giant’s report.
The earnings picture wasn’t much better outside of tech, as Ford and Starbucks also missed estimates. Those stocks fell about 6% and 2%, respectively.
Investors are coming off some large gains for the major averages on Thursday. The Nasdaq Composite rose 3.25% for its best day since November and is on track for a fifth-straight winning week. The S&P 500 gained 1.47%.
The Dow, however, finished Thursday slightly lower, weighed down by health-care stocks, but is still positive for the week.
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