U.S. futures are dropping in pre-market trading on Friday following the release of the January U.S. non-farms payroll results today.
The U.S. added 151,000 jobs in January, while economists surveyed by Bloomberg were expecting the economy to add 188,000 jobs, a fall from the adjusted 262,000 jobs that were added in December 2015. The U.S. unemployment rate currently stands at 4.9%.
Along with the weak jobs news, the U.S. economy has been sputtering lately, growing just 0.7% in the fourth quarter, its slowest pace since first quarter 2015. It isn't just the U.S. economy that has been suffering however, as a global economic slowdown -- especially in China -- has depressed markets all year.
International headwinds caused the IMF to downgrade global growth projections both this year and next. Falling crude prices are the main culprit for this downturn as the commodity has lost over 70% of its value in the last 18 months.
"Oil and metals prices have fallen by around two-thirds from their most recent peaks, and are likely to stay low for quite some time," IMF managing director Christine Lagarde told students at the University of Maryland on Thursday. "As a result, many commodity-exporting emerging economies are under severe stress, and some currencies have already seen very large depreciations."
Domestically, President Obama will propose a $10-per-barrel surcharge on oil to fund clean transportation projects when he releases his final budget request as President next week. The surcharge will be paid by oil companies and fund more than $300 billion worth of investments in mass transit, high speed rail, and other transportation initiatives. However, analysts highly doubt that the Republican-controlled Congress will pass a budget that features that provision.
U.S. companies continue to be in the thick of earnings season with movie studio Lions Gate Films (LGF) dropping in after-hours trading on Thursday after reporting earnings of $0.45 per share, missing analysts' expectations by $0.04 per share.
Internet security company Symantec (SYMC) is climbing 11% pre-market after reporting earnings of $0.26 per share in the most recent quarter, topping analyst expectations by $0.02. The company also announced a $500 million investment from private equity firm Silver Lake Partners.
Tyson Foods (TSN) is rising in pre-market trading after the company reported EPS of $1.15 in its latest quarter, well ahead of the $0.89 that was expected. The company also raised its full-year EPS guidance to between $3.85 and $3.95 from its previous view between $3.50 and $3.65.
Social networking site LinkedIn (LNKD) is falling 31% in pre-market trading after issuing first-quarter guidance that is at least 20 cents below analysts' expectations.
Finally, Tableau Software (DATA) is down 37% pre-market after the company said that, "It is more likely than not that the benefit from our U.S. federal and state deferred tax assets will not be realized. In recognition of this risk, we have provided a valuation allowance of $46.7 million on the deferred tax assets relating to these jurisdictions."
"In one sinister night two of the highest-valued stocks in the land, Tableau Data and LinkedIn disappoint and it's almost tailor-made for the moment," commented TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. "I mean, what more evidence do you need to roll into down and out cyclicals than to see faltering themes like analytics, the cloud, the modern want ads. You name it."