Wall Street pares gains after jobs data

NEW YORK — Stock futures pared some of their early gains Friday as investors were disheartened by a rise in the unemployment rate last month even as the number of job losses dropped.

The Labor Department said employers cut 539,000 jobs last month, the fewest in six months and much less than the 620,000 job losses analysts had been expecting.

However, the unemployment rate climbed to 8.9 percent from 8.5 percent in March as many businesses refrained from hiring amid an uncertain economic outlook.

Futures were already rising ahead of the labor report in reaction to the results of the government’s stress tests of banks that said 10 of the 19 largest U.S. banks will need to raise about $75 billion in new capital, as a buffer against losses if the economy worsens. Some investors feared the test results would show the big banks needed much more capital.

Ahead of the market’s open, Dow Jones industrial average futures rose 66, or 0.8 percent, to 8,453, after rising as much as 123 points prior to the jobs report. Standard & Poor’s 500 index futures rose 7.50, or 0.8 percent, to 914.50, while Nasdaq 100 index futures rose 7.25, or 0.5 percent, to 1,401.75.

The market has been on an upward swing since early March, rising more than 25 percent from 12-year lows on good news about business at banks and an increasing amount of improving economic data on housing, manufacturing and other key sectors of the economy.