Stock Futures Surge After Jobs Report
NEW YORK (TheStreet) -- Stock futures were popping Friday after a better-than-expected U.S. labor market report.
Futures for the S&P 500 were rising 11 points, or 10.66 points above fair value, to 1,603.25. Stocks rallied Thursday as the European Central Bank lowered interest rates in a sign that policymakers are willing to take further actions to revive their moribund economies while investors embraced reports that showed improvement in U.S. employment.
Futures for the Dow Jones Industrial Average were surging 100 points, or 92.42 points above fair value, to 14,860. Futures for the Nasdaq were up 21 points, or 19.06 points above fair value, to 2,923.
The Bureau of Labor Statistics reported that 165,000 nonfarm jobs were added in April, up from an upwardly revised increase of 138,000. The jobless rate fell to 7.5% from 7.6%. Economists surveyed by Thomson Reuters were looking for an addition of 145,000 jobs last month with the unemployment rate remaining at 7.6%.American International Group (AIG) was rising 2.63% to $43.24 after the insurance giant said its after-tax operating income, which excludes the impact of certain investments and hedging activities, rose 28% in the first quarter to $3.02 billion. LinkedIn (LNKD) was plunging 9.26% to $183 in premarket trading after the career Web site forecast on Thursday second-quarter sales and earnings below analysts' estimates. Zagg (ZAGG) was plummeting 25.15% to $5.15 after the mobile-device accessory maker cut its full-year revenue outlook. The company's first-quarter results fell far short of expectations after an 83% plunge in earnings, as sales and margins deteriorated. Kraft Foods' (KRFT) first-quarter earnings topped Wall Street expectations. The company earned $456 million, or 76 cents a share, down from $483 million, or 82 cents a share, a year earlier. Revenue rose 2% to $4.55 billion. Wall Street was expecting earnings of 63 cents a share on revenue of $4.49 billion. Several more reports are expected at 10 a.m. EDT, including ISM Services and factory orders. The Institute for Supply Management is predicted to report that the non-manufacturing index softened to 54 in April from 54.4 in March. Factory orders fell 2.6% in March after rising 3% in February, according to economists' estimates. June gold futures were gaining $5.50 to $1,473.10 an ounce. Crude oil futures for June delivery were up 35 cents to $94.34 a barrel. The DAX in Germany was up 0.26% and the FTSE in London was up 0.18%. The Hong Kong Hang Seng Index closed up 0.1%. Japanese markets were closed for public holiday and set to reopen Tuesday. The benchmark 10-year Treasury was up 1/32, diluting the yield to 1.627%. The dollar was down 0.27% to $82 according to the U.S. dollar index. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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