Stock Futures Rise on Mixed Jobs Report
NEW YORK (TheStreet) -- Stock futures were trading higher Friday after a mixed labor market report for May alleviated concerns about an early wind-down of the Federal Reserve's stimulus program.
Futures for the S&P 500 were rising 10 points, or 11.19 points above fair value, to 1,632.75. Futures for the Dow Jones Industrial Average were up 70 points, or 74.38 points above fair value, to 15,106. Futures for the Nasdaq were up 17.5 points, or 17.6 points above fair value, to 2,967.
The Labor Department reported that nonfarm payrolls rose 175,000 in May after rising by a downwardly revised 149,000 in April. The May number was above the 170,000 jobs that economists were calling for, but remained below the three-month and six-month averages of just over 200,000. The jobless rate ticked up to 7.6% from 7.5% due to a tiny uptick in the labor participation rate. Economists expected it to remain at 7.5%.
The report showed no increases in wages and workweek hours."From a market perspective this does not enhance prospects for a tapering earlier than has been expected, i.e. Sep/Oct, and sort of continues the Fed's approach that will give the market less insight into tapering details as opposed to more," David Ader, head of U.S. government-bond strategy at CRT Capital in Stamford, Conn., wrote in a note. Gap ( GPS) was rising 1.39% to $41.55 after the apparel retailer booked a 7% increase in May same-store sales, better than the 4.1% gain that analysts were expecting. The increases were driven by strength at its Gap and Old Navy businesses. Quiksilver ( ZQK) was plunging more than 12% to $6.70 after the sports apparel retailer reported a quarterly loss of 12 cents a share, missing the average analyst estimate of earnings of 4 cents a share, with revenue also falling short of expectations as comparable-store sales fell 4%. Intel ( INTC) was sliding 0.57% to $24.51 after the chipmaker was cut to "underweight" from "neutral" by Piper Jaffray analysts, who cited concerns about the deterioration in the company's PC business. Wal-Mart ( WMT) was edging higher to $75.99. The world's biggest retailer holds its annual meeting Friday in Bentonville, Ark. The FTSE 100 in London was up 0.06% and the DAX in Germany was off 0.18%. The Hong Kong Hang Seng settled down 1.21%, while the Nikkei in Japan fell 0.21%. August gold futures were falling $4.70 to $1,411.10 an ounce. July light sweet crude oil futures were up 38 cents to $95.14 a barrel. The benchmark 10-year Treasury was falling 8/32, raising the yield to 2.111%. The dollar was down 0.05% to $81.50 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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