Dow Jones Industrial Average Edges Lower as Payrolls Spike

Dow Jones Industrial Average (DJIA) futures are pointed lower after the release of the latest nonfarm payrolls report, which showed a sharper-than-expected increase of 271,000 last month. Plus, the unemployment rate fell to 5%, marking its lowest level since April 2008. The prospect of an imminent December interest rate hike has sparked some mild jitters -- particularly after the typically dovish Chicago Fed President Charles Evans, speaking on CNBC this morning, said he would keep an "open mind" regarding an interest rate liftoff.

Traders are also digesting the latest round of earnings -- including a mixed report from blue chip Walt Disney Co (NYSE:DIS), which bears are hoping will spark losses -- as well as major merger news from Alibaba Group Holding Ltd (NYSE:BABA).

Continue reading for more on today's market, including:

• This streaming music giant's second headline-making move of the week wasn't enough to sway option bears.
• The Street got more volatility than it had bargained for after this cybersecurity firm reported earnings. 
• These 3 biotechs got destroyed after earnings.

And now, on to the numbers…

Futures on the Dow Jones Industrial Average (DJIA) are 4.4 points below fair value.

 5 Things You Need to Know Today

 

1. Shanghai stocks continued to press into bull-market territory, as traders on the mainland shrugged off uncertainty ahead of the U.S. payrolls report.
2. The Chicago Board Options Exchange (CBOE) saw 1.1 million call contracts traded on Thursday, compared to 662,047 put contracts. The resultant single-session equity put/call ratio slid to 0.63, while the 21-day moving average edged down to 0.68. 
3. China-based e-commerce giant BABA has agreed to buy Internet TV company Youku Tudou Inc (ADR) (NYSE:YOKU) for close to $3.7 billion in cash, or $27.60 per share, after increasing its initial offer by about $1 per share.
4. AstraZeneca plc (ADR) (NYSE:AZN) is 1.4% lower pre-market, after the pharmaceutical firm secured a deal to purchase ZS Pharma Inc (NASDAQ:ZSPH) for $2.7 billion, or $90 per share -- a 42% premium to last night's close. ZSPH, which previously held M&A discussions with another drugmaker, has shot about 40% higher on the news ahead of the bell.
5. Tripadvisor Inc (NASDAQ:TRIP) came up shy of the Street's third-quarter profit and revenue estimates and lowered its full-year sales growth guidance, sending the shares nearly 10% lower pre-market. This would be a larger-than-usual post-earnings move, based on historical data.

Earnings and Economic Data

 

On top of the Labor Department's employment report, the Fed's monthly report on consumer credit will be revealed. Rounding out the week's slate of central bank speeches is Fed Governor Lael Brainard. Earnings are relatively light, with reports from ArcelorMittal (MT), CIGNA (CI), and Humana (HUM) headlining. To see what's coming up on next week's schedule, click here.