Rally on the line as investors show signs of caution before the October jobs report.
November 5, 2004: 7:26 AM EST
NEW YORK (CNN/Money) - The forthcoming October employment report, no longer being gleaned for its political implications, will keep investors cautious about extending a two-day rally ahead of Friday's U.S. stock market open.
Early Friday, Nasdaq and S&P futures were mixed to higher, but changes can be expected following the 8:30 a.m. ET release of the Labor Department report.
The jobs figures are expected to show modest growth in non-farm payrolls. Economists surveyed by Briefing.com expect a gain of 176,000 jobs and the unemployment rate holding steady at 5.4 percent.
Oil prices are staying pretty close to the significantly lower levels reached Thursday, when futures fell more than $2. U.S. crude futures rose 12 cents to $48.94 a barrel in electronic trading, while Brent oil futures slipped 1 cent to $46 a barrel in London.
For the second straight session, stocks responded positively to the re-election of President Bush, as well as lower oil prices and Altria's possible spinoff of some tobacco units. The Dow Jones industrial average gained 1.8 percent, while the Nasdaq composite index advanced 1 percent (see chart for details).
The Dow takes a 287-point gain into the week's final session, while the Nasdaq is up 48.64.
Asian-Pacific stocks rallied Friday, with Tokyo's Nikkei index gaining 1.1 percent. European markets were higher at the open. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Ford Motor (Research) rose 4.6 percent. An auto industry tracking group report issued Thursday said vehicle incentives declined 11 percent last month, with Ford and General Motors (Research) leading the way.
Treasury prices rose in early trading, sending the 10-year note yield down to 4.06 percent from 4.07 percent late Thursday. The dollar edged higher against the yen and euro. Gold was higher.
In corporate news, the New York Times reported Friday that leading plaintiff lawyers will be meeting within a week to discuss litigation against drugmaker Merck (Research), due to the elevated heart attack and stroke risk that forced the drug maker to pull the pain relief drug Vioxx from the market.
The drugmaker's stock could also be hit by a report by Swiss researchers for British medical journal The Lancet said that the company should have pulled Vioxx four years ago because of data on heart risks.
Shares of Merck, a Dow component, lost 14 cents to $26.88 in pre-market trading Friday on Inet.
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