Investors could take cues from report ahead of the open, raised Intel forecast.
September 5, 2003: 7:07 AM EDT
NEW YORK (CNN/Money) - Stocks prepared for a flat start Friday morning, but that could change after investors get a reading on unemployment in August ahead of the opening bell.
At 7 a.m. ET, futures pointed to a flat to weaker start for the markets.
Economists surveyed by Briefing.com expect the unemployment rate to hold at 6.2 percent, with a lackluster 18,000 jobs created. The payrolls figure would be an improvement over the 44,000 jobs reported lost in July.
For details of Thursday's gains, click above
"The nonfarm payrolls is the main focus of attention today and people will be looking out for any deterioration in the manufacturing sector," Steve Previs, a dealer in U.S. shares at Jefferies International, told Reuters.
Investors have been watching reports on unemployment closely in recent months as they hold out hope for signs of a recovery in the second half of 2003. Traders have said that a boost in the labor market would be a key component to economic recovery, as job security often translates into better consumer spending levels.
But the stock markets appear to have an economic recovery in their head, as evident by rallies that began before Labor Day and have continued throughout this week. The Dow Jones industrial average and the S&P are at their highest levels in 15 months, while the Nasdaq composite index is at a 17-month high.
With its 0.2 percent gain Thursday, the Dow is up more than 172 points for the week to date; Nasdaq's 0.9 percent rise leaves it ahead by more than 58-1/2 points (see chart for details).
Some corporate news also could influence trading Friday.
Before the opening bell, Banc of America cut its investment rating on Wal-Mart (WMT: Research, Estimates) to "neutral" from "buy," saying the stock is nearing the firms price target and has played itself out of the most part. Shares of Wal-Mart slipped about 1 percent in European trading.
Intel (INTC: Research, Estimates) gained 1.5 percent in Europe the after top maker of semiconductors raised the lower end of its third-quarter sales guidance because of improved demand for processors used in desktop and notebook computers. Morgan Stanley raised its 2003 and 2004 revenue and earnings per share expectations for the company before the open Thursday.
PeopleSoft (PSFT: Research, Estimates) could also help lift techs. DB Securities upgraded its rating on the business software maker, which is being pursued in a takeover bid by Oracle, to "buy" from "hold." Shares of PeopleSoft lost 30 cents to $19.35 Thursday.
Asian-Pacific stocks ended mixed, with Tokyo's Nikkei index managing a small gain. European markets retreated in afternoon trading. (Check the latest on world markets)
Treasury prices inched higher in early trading, sending the 10-year note yield down to 4.48 percent from 4.50 percent late Thursday. The dollar was little changed against the yen and euro.
Brent oil futures for November delivery slipped 30 cents to $26.93 a barrel in London, where gold also stepped lower in early trading.
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