U.S. stock-index futures retreated, indicating the Standard & Poor’s 500 Index may extend its biggest selloff since February 2009, as investors await a jobs report amid concern the world’s largest economy is faltering.
Exxon Mobil Corp. and Chevron Corp. both lost more than 2 percent in Germany as crude oil declined for a sixth day. Alcoa Inc., the largest U.S. aluminum producer, slumped 2.8 percent as metal prices retreated. Banks including JPMorgan Chase & Co. and Bank of America Corp. also dropped.
Futures on the S&P 500 expiring in September dropped 0.8 percent to 1,189.7 at 6:02 a.m. in New York. Dow Jones Industrial Average futures lost 88 points, or 0.8 percent, to 11,283.
“The move in equities relative to bonds has been really shocking,” said Trevor Greetham, director of asset allocation at Fidelity International in an interview with Bloomberg Television. “If we get a positive payrolls number, markets would rally very strongly. Lead indicators are still very negative, so I would be tempted to sell into that rally.”
U.S. stocks plunged yesterday as concern that the global economy is weakening prompted a global rout that has wiped off more than $4.4 trillion from equity market values worldwide since July 26. The benchmark S&P 500 has lost 7.1 percent so far this week, on course for the biggest five-day selloff since at least November 2008.
U.S. Jobs, Unemployment
Today’s non-farm payrolls report may show that U.S. employers failed to create enough jobs in July to reduce the jobless rate, economists said. Payrolls climbed by 85,000 workers after an 18,000 increase in June that was the smallest this year, according to the median forecast in a Bloomberg News survey.
The Labor Department release, due at 8:30 a.m. in Washington, may also show that the jobless rate held at 9.2 percent after rising in each of the previous three months. Data yesterday showed initial claims for unemployment insurance payments fell last week to a level that shows limited improvement in the labor market.
Exxon lost 2.3 percent to $72.18 in Germany and Chevron retreated 2.6 percent to $94.28 as crude oil fell to its lowest price in eight months as investors speculated that fuel demand will falter as the U.S. economy stalls.
Alcoa lost 2.8 percent to $12.58 in early New York trading as base metals tumbled on the London Metal Exchange.
JPMorgan lost 2.4 percent to $37.02 in Germany, while Bank of America retreated 3.7 percent to $8.50 in early New York trading. The two biggest U.S. banks respectively tumbled 5 percent and 7.4 percent yesterday.
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