US stocks to open lower
European markets dropped early on Friday in subdued trading as investors exercised caution ahead of the US unemployment report. The report is seen as one of the last few make-or-break data points before the Federal Reserve’s interest rate decision in December. The Euro Stoxx 50 remained within its narrow range of the past three days.
UK markets were trading flat with positive corporate results from Inmarsat (L:ISA) and BA-owner International Consolidated earnings balanced by a decline in BHP Billiton (L:BLT) shares after one of its dams broke, flooding a village in Brazil.
BHP Billiton PLC (L:BLT) fell to the bottom of the FTSE 100 on news of the dam burst. Investors are punishing the company for what looks on the face of it to be negligence in maintaining the dam, which is likely to mean legal as well as repair costs. The rest of the mining sector has held together ok with Rio Tinto (L:RIO) one of the top risers on the UK equity benchmark.
Strong guidance despite a drop in third quarter profits at Inmarsat helped the satellite company towards the top of the FTSE. The launch of the Global Xpress satellite is already reaping some rewards. Deals signed with Lufthansa and Deutsche Telecom have improved the long term outlook so it makes sense to look through the higher financing costs that brought profits down in Q3.
CRH (L:CRH) was top riser after a broker upgrade.
US stocks look set to open lower on Friday before the jobs report after Walt Disney Company (N:DIS) missed sales estimates. Disney shares are expected to drop slightly on the open since the sales miss came alongside better than expected earnings growth in Q3.
Earnings are expected from Humana and CIGNA on Friday.
USA pre-opening levels
S&P 500: 1 point lower at 2,098
Dow Jones: 14 points lower at 17,849
Nasdaq 100: unchanged at 4,702
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