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Stock Futures Surge on Rise In U.S. Nonfarm Payrolls

NEW YORK ( TheStreet) -- U.S. stock futures were surging Friday after the July nonfarm payrolls number came in better than expected.

Futures for the Dow Jones Industrial Average were rising 117 points, or 126.12 points above fair value, at 12,948. Futures for the S&P 500 were up 14.1 points, or 15.45 points above fair value, at 1376, while futures for the Nasdaq 100 were up 29.75 points, or 28.78 points above fair value, at 2648.

The Labor Department said Friday that nonfarm payrolls rose by 163,000 in July, better than the 100,000 expected by economists in a Reuters survey. This was the biggest monthly jobs gain since February.

The June nonfarm payrolls number was downwardly revised to 64,000 in June.

Average hourly earnings for all employees on private nonfarm payrolls edged up by 2 cents to $23.52.

The unemployment rate in July rose to 8.3%.

The Institute for Supply Management's July non-manufacturing index, which will be released at 10 a.m., is expected to fall to 52 from 52.1 in June.

September crude oil futures were up $1.05 at $88.18 a barrel. December gold futures were up by $6.80 at $1,597.50 an ounce.

The benchmark 10-year Treasury was falling 9/32, raising the yield to 1.511%. The greenback was trading down 0.42%, according to the dollar index.

The FTSE in London was rising 1.09% and the DAX in Germany was gaining 1.55%.

The Hong Kong Hang Seng index finished down by 0.12% and the Nikkei in Japan settled lower by 1.13%.

U.S. stocks slid Thursday for a fourth straight session after European Central Bank President Mario Draghi said little about helping struggling nations a day after the Federal Reserve failed to deliver support to the U.S. economy.

A surprising decline in U.S. factory orders also put a damper on sentiment.

On the corporate front, American International Group (AIG - Get Report) reported Thursday second-quarter after-tax operating income of $1.9 billion, or $1.06 a share, topping analysts' estimates of 57 cents a share.

Revenue rose 3% to $17.12 billion.

AIG on Thursday said after-tax operating income for its combined insurance operations was $1.9 billion during the second quarter, increasing from $1.5 billion a year earlier.

During the second quarter, the insurance giant repaid all the loans it owed to the Federal Reserve as part of bailout funding it received in 2008 and 2009.

Procter & Gamble (PG - Get Report), the consumer products giant, reported a 45% increase in fiscal fourth-quarter net income, helped by the sale of its snacks division. Excluding special items, earnings came in at 82 cents a share, exceeding analysts' estimates of 77 cents a share.

Revenue fell by 1% to $20.21 billion, missing the Wall Street target of $20.26 billion by a bit, amid higher commodity costs and a strong dollar.

LinkedIn (LNKD), the social networker, met Wall Street earnings expectations for its second quarter, but beat on the top line.

LinkedIn reported Thursday second-quarter earnings of 16 cents a share on revenue of $228.2 million. Analysts were expecting profit of 16 cents a share on revenue of $216.28 million.

LinkedIn said it expects third-quarter sales of $235 million to $240 million. Analysts expect $236.1 million.

Toyota (TM) on Friday posted profit for the April-June quarter of 290.3 billion yen ($3.7 billion), up from 1.1 billion yen a year earlier, and the automaker raised its sales target for the year.

Toyota said it expects sales in 2012 of 9.76 million vehicles, up from 7.95 million vehicles sold in 2011.

SAP (SAP) agreed to pay Oracle (ORCL) $306 million in damages over copyright infringement allegations.

Oracle won a trial on the same issues two years ago and was awarded $1.3 billion in damages. A judge threw out the award, but the latest agreement clears the way for Oracle to ask an appeals court to restore the $1.3 billion jury award, according to reports.

Bain Capital and Thomas H. Lee Partners are among several parties that have put in initial bids for McGraw-Hill's (MHP) education business, sources told Reuters, which could value the world's second-largest education company by sales at around $3 billion.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

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