Equity exchange traded funds have been pushed around this week by the latest headlines crossing on Europe’s debt crisis.
However, the focus will swing to the U.S. economy on Friday morning as markets get the October nonfarm payrolls report. The data will give investors a glimpse of how the economy is progressing after GDP grew at a 2.5% rate in the third quarter.
According to a Reuters survey, nonfarm payrolls likely rose by 95,000 in October, compared to the 103,000 gain in September. [Stock ETFs Lower as Markets Eye Fed, ECB, G-20]
During a normal economic expansionary period, healthy monthly payroll gains averaged around 150,000, and in the early stages of an economic rebound, gains are expected to surge above 250,000 per month.
The payroll data will allow the market and investors to get a sense of the direction the U.S. economy is heading, according to CNBC.
“Our monthly review of tax and withholding data from the U.S. Treasury’s Daily Statement points to another lackluster month for U.S. job creation,” said Nicholas Colas, chief market strategist at ConvergEx Group, in a note Thursday. “There seems little chance of a significant upside surprise, and some chance of a shortfall. Looking at the data from 2008 to the present, it is clear that the U.S. labor market has lost momentum in last six months after a stronger period in the fourth quarter of 2010 and the first quarter of 2011. The notion that the Friday report will be at best inline but quite easily worse than expected would also explain the dovish change of heart implied by the Federal Reserve statement yesterday.”