U.S. Stock Futures Slip on Concerns Over Jobs Report

What’s Happening

• Dow Jones Industrial Average futures (YM00, -0.15%) fell 51 points, or 0.2%, to 34,080.
• S&P 500 futures (ES00, -0.15%) dropped 8 points, or 0.2%, to 4,439.
• Nasdaq 100 futures (NQ00, -0.23%) decreased 42 points, or 0.3%, to 15,197.

Previous Day’s Market Performance

On Thursday, the Dow Jones Industrial Average (DJIA, -1.07%) fell 366 points, or 1.07%, to 33,922. The S&P 500 (SPX, -0.79%) declined 35 points, or 0.79%, to 4,412, and the Nasdaq Composite (COMP, -0.82%) dropped 113 points, or 0.82%, to 13,679.

Markets were reacting to positive signs of strength in the labor market as indicated by ADP’s private-sector payrolls report. Additionally, strong sentiment in the services sector and the hawkishness revealed in the Federal Reserve’s minutes contributed to the market movement.

The yield on the 2-year Treasury (TMUBMUSD02Y, 4.981%) surpassed 5% to reach its third-highest level of the year, while the yield on the 10-year Treasury (TMUBMUSD10Y, 4.040%) topped 4% on Thursday.

Economists at fund giant Vanguard remain optimistic, expecting nonfarm payrolls to show a rise of 225,000. They noted that seasonal adjustment methodology may have biased the ADP report, which showed a surprising increase of 497,000 private-sector jobs created last month.

According to economists polled by The Wall Street Journal, payrolls growth in June is expected to slow to 240,000 from 339,000, with the unemployment rate easing to 3.6% and hourly wages growing 0.3%.