Stocks may open weaker Friday after the release of
weaker-than-expected data on U.S. December payrolls.

The U.S. Labor Department today reported that nonfarm payrolls rose 18,000 in December, the job market;s worst performance since a decline of 42,000 in August 2003.

The U.S. unemployment rate rose to 5%, the highest level since November 2005, from 4.7% the previous month.

The poor employment report could clear the way for a fourth-straight rate cut by the U.S. Federal Reserve later this month, as concerns mount about ongoing troubles in credit markets.

Later this morning, the U.S. Institute of Supply Management’s measure of services activity for December will be released.

Here at home, Statistics Canada today reported that November prices for manufactured products and raw materials were pushed up by surging petroleum prices.

The Canadian dollar moved up 0.49 of a cent to US101.41¢.

In earnings news, Liquidation World reported a loss of $11.7 million for its 2007 financial year ended Oct. 7, as it restructured operations and moved to quit the U.S. market. Sales for the year were up 1.8% to $212 million.

The February bullion contract was unchanged at US$869.10 an ounce, while oil slipped back in electronic trading, off five cents at US$99.13 per barrel after poking above $100 during the last two sessions on supply concerns.

Overseas, the Nikkei 225 dropped 4% in Tokyo after traders returned from the holiday break, hurt by a weak performance from auto makers including Nissan as well as recent bearish economic data out of the U.S.

Most other international markets fared better. The Hang Seng climbed 2.4% in Hong Kong and the FTSE 100 rose 0.4% in London.

Stocks moved little on Thursday in anticipation of the jobs report. The Dow industrials gained 12.76 points to 13056.72. The S&P 500 was unchanged at 1447.16, and the Nasdaq fell 6.95 to 2602.68.

Crude-oil futures backed down a bit, off 26 cents to $98.92 a barrel after testing $100 in each of the last two sessions.

James Neale, an oil sector analyst at Citigroup, said there wasn’t much difference between triple-digit oil and the $90-plus per barrel levels that have persisted for over a month. “Oil prices are high, yes, but seemingly still not high enough either to quell demand or to stimulate the acceleration of investment spending required to raise supply,” he said.

Among stocks to watch, Intel shares fell 1.5% to $24.30 before the opening bell after J.P. Morgan cut its rating on the stock to “neutral” from “overweight,” citing a late-quarter slowdown in order rates. Intel also has pulled out of the one laptop per child program.

The dollar edged higher against the euro and the Japanese yen. Gold futures fell $4.70 to $864.40 an ounce.

The Toronto stock market pushed higher on Thursday, lifted by strong resource issues, after gold and oil prices touched record highs for a second day in a row.

The S&P/TSX composite index climbed 51.44 points, or 0.37%, at 13,978.20

The junior S&P/TSX Venture composite index gained 15.11 points, or 0.53%, to finish at 2,885.60.

In New York, U.S. stocks ended little changed.

The Dow Jones industrial average was up 12.76 points, or 0.10%, at 13,056.72. The S&P 500 was unchanged at 1,447.16. The Nasdaq Composite index was down 6.95 points, or 0.27%, at 2,602.68.