Friday, Mar 09, 2012

--Stock futures flutter around the flatline ahead of jobs data

--Europe edges up after Greece debt-swap participation tops estimates

--February nonfarm payrolls expected to rise 213,000 


 
   By Tomi Kilgore 
   DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stock futures hovered around unchanged levels Friday morning as relief that Greece secured enough debt-swap commitments was offset by investor caution ahead of the closely-watched government jobs report.

Dow Jones Industrial Average futures slipped 4 points, or less than 0.1%, to 12840. The Dow rose 71 points, or 0.6%, on Thursday.

Standard & Poor's 500-stock index futures fell 1 point, or 0.1%, to 1360, and Nasdaq 100 futures fell 2 points, or 0.1%, to 2631. Changes in stock futures do not always accurately predict stock moves after the opening bell.

The S&P 500 rose 1% on Thursday and 1.7% in two days, the best two-day percentage gain since Dec. 23.

The U.S. Labor Department February employment report, still the most closely-followed data point of the month, is scheduled for release at 8:30 a.m. EST. Economists surveyed by Dow Jones Newswires expect, on average, nonfarm payrolls to grow by 213,000, which is less than last month's increase of 243,000. The unemployment rate is expected to remain unchanged at 8.3%.

Data on the trade deficit in January is also due out at 8:30 a.m., EST, followed by January wholesale inventory data at 10 a.m., EST.

European markets edged mostly higher, with the Stoxx Europe 600 up 0.2%, after Greece secured enough debt-swap commitments from private creditors to restructure its debt and receive bailout funds.

The overall participation rate of 83.5% was above expectations of 75% to 80%, but Greece may still activate collective action clauses which would forcibly lift the participation rate to 95.7%.

The International Swaps and Derivatives Association will meet Friday to determine whether a credit event has occurred.

Still, the relief that a disorderly default didn't occur helped push yields on 10-year Italian government bonds to below 4.7% an on 10-year Spanish bonds to below 5%.

Asian bourses were broadly higher on the back of U.S. gains and optimism toward Greece, with Japan's Nikkei Stock Average rising 1.7%, and peeking briefly above 10,000 in intraday trading for the first time since August. China's Shanghai Composite gained 0.8%.

Crude oil futures were up 0.3% to $106.90 a barrel, while gold futures tacked on 0.2% to $1,701.70 an ounce. The U.S. dollar gained ground against the euro and the yen.

In corporate news, Starbucks Coffee Company introduced its first at-home, single cup coffee making machine, named the Verismo system, that makes espresso beverages and brewed coffee. The new system will compete with the leading Keurig brewer made by Green Mountain Coffee Roasters. Shares of Green Mountain Coffee slumped 15% in premarket trading, while Starbucks' stock rose 3.2%.

Bank of America negotiated a side deal to allow more than 200,000 households to reduce their mortgage balances and could allow the bank to avoid as much as $850 million in penalties, the Wall Street Journal reported. The Dow component's stock ticked up 0.5% in the premarket.

Texas Instruments lowered its expected ranges for revenue and earnings for the current quarter, citing lower demand for wireless products. The semiconductor maker's stock was still inactive ahead of the open.

Also in the chip industry, Altera indicated that the revenue outlook for the current quarter had weakened, citing continued softness in sales to wireless customers and timing issues in the military market. The stock wasn't yet trading in the premarket.

Elsewhere, Molycorp said it agreed to buy Canadian rare-earth mining company Neo Material Technologies for C$1.3 billion to gain greater exposure to China. Molycorp's stock advanced 3.2% ahead of the open.

-By Tomi Kilgore, Dow Jones Newswires; 212-416-2470; tomi.kilgore@dowjones.com

(END) Dow Jones Newswires

March 09, 2012 07:53 ET (12:53 GMT)