US stock futures soar on fewer job losses
NEW YORK — U.S. stock futures pushed higher Friday as investors cheered a government report that said employers cut fewer jobs than expected last month.
The Labor Department said 345,000 jobs were lost in May, significantly less than the half-million job losses economists had been expecting and the fewest job losses since September.
However, the unemployment rate surged to a slightly higher-than-expected 9.4 percent from 8.9 percent in April, proving that companies are still reluctant to hire back laid off workers.
But investors looked beyond the higher unemployment rate and instead took the slower pace of layoffs for a fourth month in a row as a sign that labor market may be stabilizing.
The impact of the jobs report was evident in other markets, too. Safe-haven assets like gold and government bonds sold off sharply, while oil prices surged briefly above $70 a barrel — a new high for the year. Meanwhile, the dollar, another traditionally safe bet, reversed early gains and declined against other major currencies.
Unemployment has been one of the most closely watched gauges of the economy’s health throughout the recession. Rising job losses affect vast areas of the economy, including consumer spending, retail sales and the housing market.
Ahead of the market’s open, Dow Jones industrial average futures rose 97, or 1.1 percent, to 8,827, after being up about 33 points prior to the report. Standard & Poor’s 500 index futures jumped 11.60, or 1.2 percent, to 952.10, while Nasdaq 100 index futures gained 10, or 0.7 percent, to 1,503.
Besides jobs, investors also will be keenly focused on the financial sector Friday after The Wall Street Journal reported that the Federal Deposit Insurance Corp. is pressing for a management shake-up at Citigroup Inc.
The embattled New York-based bank has already received $45 billion in government rescue funds. Last month, the government determined that it would need to raise an additional $5.5 billion as a buffer against future losses.
Citigroup shares added 9 cents to $3.66 in premarket trading.
Shares of computer maker Apple Inc. rose ahead of the market’s opening following a report that co-founder and CEO Steve Jobs, who has been on medical leave since January, will return to the company’s helm later this month as expected.
There has been much concern and uncertainty surrounding the health of Jobs, a survivor of pancreatic cancer who said at the start of the year that he was suffering from a treatable hormone imbalance. Apple shares jumped $2.45 to $146.19.
Going in to Friday’s session, both the S&P 500 index and the Nasdaq are at highs for the year, and both are showing gains for 2009. The Dow is now down just 26 points for the year.
Stocks have rallied over the past three months as improving economic data and better performance of banks gives investors hope that the recession could end some time this year. While investors have become a bit more cautious in their buying in recent weeks, as rising commodity prices, a sinking dollar and higher interest rates have brought about fears of inflation, analysts argue that the market’s overall projection is up. Still, analysts say it would not be unusual for a fairly significant pullback, considering the major indexes have surged more than 30 percent since early March.
On Thursday, stocks rose for the fifth time in six days as upbeat analyst reports on banks and rising oil prices helped lift financial and energy stocks. Investors were also encouraged by data that showed the number of workers continuing to receive unemployment benefits unexpectedly dropped for the first time in 20 weeks.
Bond prices plunged early Friday as investor appetite for risker assets grew. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to a fresh high for the year of 3.81 percent from 3.71 percent late Thursday.
Oil prices extended their three-month rally, briefly moving above $70 a barrel following the jobs report. Recently, oil rose 45 cents to $69.26 in electronic trading on the New York Mercantile Exchange.
Overseas, Japan’s Nikkei stock average gained 1.0 percent. In afternoon trading, Britain’s FTSE 100 was up 2.1 percent, Germany’s DAX index was up 1.7 percent, and France’s CAC-40 added 1.9 percent.
- Asian stocks edge lower, get little boost from Wall Street, as rally loses steam
- Oil extends rally, jumps above $78 in Asia, as US gasoline supplies drop
- Banks cut back on Fed emergency lending programs, sign credit stresses easing
- Stocks post modest gains as rising energy companies offset slide in financials; Dow adds 47
- Despite 'serious concerns,' Obama administration doesn't cite China as currency manipulator
- Gold, other metals fall as dollar gains ground against other currencies; Oil jumps to new high
- A day after Dow breaches 10,000, stock wander as earnings from Goldman, Citigroup disappoint
- Energy prices rebound strongly on big draw in gasoline; crude hits new high for year
| |
Related News
Agriculture futures soar on Chicago BOT; Pork prices higher, beef futures fallOctober 6th, 2009 Agriculture futures soar, livestock prices mixedCHICAGO — Agriculture futures were mostly higher early Tuesday on the Chicago Board of Trade. Wheat for December delivery jumped 11.25 cents to $4.54 a bushel; December corn soared 18.5 cents to $3.60 a bushel; November soybeans leapt 20 cents to $9.05 a bushel; and oats for December delivery gained 7 cents to $2.29 a bushel.
Asian stock markets fall after weak US jobs report; oil lingers below $70 a barrelOctober 5th, 2009 Asian markets fall after weak US jobs report
HONG KONG — Asian stock markets fell Monday after a worse-than-expected U.S. jobs report raised concerns a strong recovery in the world's largest economy is still far off.
Stock futures set to lower open as employers shed more jobs than expectedOctober 2nd, 2009 Stock futures tumble after unemployment dataThe stock market headed for a sharply lower open Friday after the government said more jobs were lost in September than expected. The Labor Department said employers cut a net total of 263,000 jobs last month, up from a revised 201,000 in August.
US stock futures point to higher open ahead of updates on employment and GDP dataSeptember 30th, 2009 Stock futures point to higher openStock futures are moving higher after a better than expected government report suggests that the recession is ending. The Commerce Department's latest reading on second-quarter gross domestic product shows the economy sank at a pace of just 0.7 percent in the spring.
US stock futures little changed as investors await data on jobs, housingSeptember 24th, 2009 Stock futures steady ahead of jobs, housing dataNEW YORK — Stock futures are little changed as investors wait for more clues on how the economy is faring. The quiet trading Thursday follows declines in markets overseas that came after the Federal Reserve left interest rates unchanged and said the pace of economic activity has improved.
Jobs report gives stocks futures a lift, investors look for signs of recoverySeptember 10th, 2009 Stock index futures rise on jobs reportA better than expected jobs report boosted stock futures Thursday, as Wall Street appeared to be heading for a modestly higher open. The Labor Department said that new jobless claims fell more than expected to 550,000 last week and total unemployment rolls dropped.
Stock futures climb after government says job losses fall to lowest level in a yearSeptember 4th, 2009 Stock futures climb after jobs dataNEW YORK — Stock futures are climbing as the government says job losses slowed in August to their lowest level in a year. The Labor Department says employers cut a total of 216,000 jobs in August, down from the 276,000 jobs lost in July and lower than what analysts had been expecting.
Stock futures hold on to most of their early gains after latest report on jobs marketSeptember 3rd, 2009 Stock futures stay positive after jobs dataNEW YORK — The latest reading on the labor market is giving investors some hope that the economy is healing. Stock futures held on to most of their early gains after the Labor Department said employers cut a total of 216,000 jobs in August, less than the 276,000 jobs lost in July and better than the 225,000 job losses analysts had been expecting.
Stock futures little changed ahead of upcoming Federal Reserve meeting, retailer earningsAugust 10th, 2009 Stock futures little changed to open weekNEW YORK —Stock futures are little changed early Monday as investors turn their attention to an upcoming Federal Reserve Board meeting and earnings from some of the nation's largest retailers. Overseas, Asian markets rose amid a positive report on Japanese machinery orders, a key indicator of corporate capital spending.
Stock futures point to modestly lower opening as investors await monthly unemployment reportAugust 7th, 2009 Stock futures moderately lower ahead of jobs dataNEW YORK — Stock futures were moderately lower Friday ahead of a key report on the nation's employment. Overseas, European markets fell modestly, while Asian markets were mixed ahead of the reading on jobs in the world's largest economy.
US stock futures mixed in narrow range as investors await reports on jobs, retail salesAugust 6th, 2009 Futures mixed ahead of jobs, retail sales reportsNEW YORK — U.S. stock futures are mixed in a narrow range as investors refrain from making big bets ahead of reports on retail sales and the labor market.
Stock futures rise as earnings from Goldman Sachs, Intel boost economic recovery hopesJuly 15th, 2009 Stock futures rise on earnings reportsNEW YORK — Investors who have been looking for signs the economy is on the mend are pushing stock futures higher in the wake of better-than-expected earnings reports from Intel and Goldman Sachs. The upward move ahead of Wednesday's market opening in New York extends gains in overseas markets.
Stocks open higher as report says employers cut fewer-than-expected jobs in MayJune 5th, 2009 Stocks jump on better-than-expected jobs reportNEW YORK — Investors are cheering a government report that said employers cut fewer jobs than expected last month. Stocks rallied in the early going Friday after the Labor Department said 345,000 jobs were lost in May, significantly less than the half-million economists had been expecting and the fewest since September.
Wall Street heads for higher open as investors await jobs data, retail sales reportsJune 4th, 2009 US stock futures point higher ahead of jobs dataNEW YORK — Stock futures are indicating a higher opening for the U.S. markets as investors await sales reports from retailers and data on the labor market.
Stock futures pare gains following uptick in unemployment rateMay 8th, 2009 Wall Street pares gains after jobs dataNEW 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.
Loading ...