Wall St.: No labor of love

February 1, 2002 Posted: 1356 GMT

NEW YORK (CNN/Money) -- U.S. stock futures slipped Friday morning on news of a lower-than-expected unemployment rate in January amid a rise in job losses and ahead of a key manufacturing sector report later in the day. 

Nasdaq-100 and the Standard & Poor's 500 futures were slightly lower, signaling a weak market open. 

The U.S. unemployment rate fell to 5.6 percent from 5.8 percent in December, the Labor Department said. Economists surveyed by Briefing.com were looking for the rate to rise to 5.9 percent. Payrolls declined by 89,000 after falling 130,000 the prior month.

After the markets open, the Institute of Supply Management's (ISM) manufacturing index for January is due to be released. The forecast is for a reading of 50, pointing to growth in the sector for the first time in 18 months. In December, the index stood at 48.2.

The Dow Jones industrial average starts at 9,920 after jumping 157 points Thursday, cresting on improved earnings from household products maker Procter & Gamble (PG: Research, Estimates). The Nasdaq composite index is at 1,934.03 following a more than 20-point advance, while the Standard & Poor's 500 stock index begins at 1,130.20, having added nearly 17 points.

Most Asian stock markets ended lower Friday, with Tokyo's Nikkei index down on renewed concerns about government reform plans. European markets were higher at midday.

Treasury prices improved a little after the jobs data, with the 10-year note yield at 5.03 percent. The dollar slipped versus the yen and was modestly higher against the euro. Brent oil futures slipped 30 cents to $18.88 a barrel in London.

In addition to the unemployment and ISM data, two other economic reports will get a look from investors after the markets open. The University of Michigan's January consumer sentiment index is expected to be unchanged at 94.2, according to the Briefing.com consensus.

And the government's report on construction spending in December is forecast to show a 0.2 percent increase after a rise of 0.8 percent in November.

After the close Thursday, media conglomerate Walt Disney (DIS: Research, Estimates) reported fiscal first-quarter earnings that surpassed forecasts by 5 cents a share. Disney shares rose $1.47 to $22.51 in before-hours trading Friday.

Online travel site Priceline.com (PCLN: Research, Estimates) was up 13 percent in pre-hours trade on news that it has entered into an agreement with online auction site eBay (EBAY: Research, Estimates) to create a new travel booking service for airlines, hotels and cruises, among other things. In before-hours trade, shares of Priceline added 84 cents to $7.14, while shares of eBay rose 22 cents to $59.24.

Biopharmaceutical firm Abgenix (ABGX: Research, Estimates) reported a wider fourth-quarter loss of $15.8 million, or 18 cents a share, compared with a loss of $4.5 million, or 5 cents per share, a year earlier. Wall Street analysts had expected the company to post a loss of 21 cents a share. Abgenix dropped $3.77 to $20.06 in before-hours trading Friday.

Adobe Systems (ADBE: Research, Estimates) rose $1.30 to $35 in before-hours trading after the graphics software maker said late Thursday that it expects to hit its previously stated fiscal first-quarter earnings target of 20 to 22 cents a share.

Biotech firm Amgen (AMGN: Research, Estimates)  announced Thursday it won FDA approval for neulasta, its key immunity-boosting drug.. Shares of Amgen gained $2.01 to $57.51 in before-hours trading Friday. The company said the agency cleared the way for launch of the injected drug as a treatment for cancer patients whose ability to fight infection has been weakened by chemotherapy.

United Airlines' parent UAL (UAL: up $0.13 to $14.70, Research, Estimates) reported a sharp fourth-quarter loss of $11.74 a share, compared with a loss of $2.41 a share in the same period one year earlier. Analysts had been looking for a loss of $14.96 a share. Shares of the stock rose 13 cents to $14.70 Thursday.