After the largest sell-off in roughly two months yesterday, Dow futures rallied 86 points into the green this morning as traders eyed a better than expected November jobs report. The U.S. economy added 211,000 jobs in November, beating economist expectations of 200,000. The unemployment rate stayed at 5%. This week, U.S. Federal Reserve Chairwoman Janet Yellen laid out the case for an interest rate hike sooner rather than later. This fresh jobs report didn't fall far short of forecasts, further cementing the prospect of a rate hike in two weeks.
The Stock Market Today: On Friday, the markets will be 100% focused on reaction to this morning's November unemployment report, released by the U.S. Labor Department at 8:30 a.m. ET. The announcement plays a central role in speculation on whether the Federal Reserve plans to raise interest rates.
Oil Outlook:Oil prices were on the rise again as the dollar hit a one-month low and traders prepared for OPEC to announce results from its latest policy meeting on how to react to the ongoing global glut of supply. January contracts for WTI crude gained 1.6% to hit $41.77 per barrel. Meanwhile, Brent oil crude - priced in London - gained nearly 2% to hit $44.71.
Earnings Outlook: BIG
Earnings Report No. 1, BIG: Discount retailer Big Lots Inc. (NYSE: BIG) will report fiscal third-quarter earnings before the market opens this morning. The company is expected by Wall Street analysts to report earnings of -$0.01 per share on top of $1.12 billion in revenue.
Stocks to Watch: NSC, CP, COO, GPRO
Stocks to Watch No. 1, NSC: Shares of Norfolk Southern Corp. (NYSE: NSC) slipped more than 4.4% on news its board of directors has unanimously rejected a takeover bid from Canadian Pacific Railway Ltd. (NYSE: CP). The board said that the current bid is "grossly inadequate" and that it is highly concerned about regulatory risks. It is likely that the firm will receive another bid in the near future.
Stocks to Watch No. 2, COO: Shares of Cooper Companies Inc. (NYSE: COO) cratered more than 20% on news that the company slashed its 2016 outlook. The firm also reported lower than expected quarterly profits.
Stocks to Watch No. 3, GPRO: Shares of GoPro Inc. (Nasdaq: GPRO) fell more than 1.5% on news that the company's stock received a downgrade from investment firm Robert W. Baird. The firm cut GPRO's rating from "Outperform" to "Neutral."
Today's U.S. Economic Calendar (all times EST)
Employment Situation at 8:30 a.m.
International Trade at 8:30 a.m.
Philadelphia Federal Reserve Bank President Patrick Harker speaks at 10:15 a.m.
Baker-Hughes Rig Count at 1 p.m.
Treasury STRIPS at 3 p.m.
Louis Federal Reserve Bank President James Bullard Speaks at 3:45 p.m.
Minneapolis Federal Reserve Bank President Narayana Kocherlakota speaks at 4:10 p.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.
