Futures Gain as U.S. Adds More Jobs in June than Forecast
NEW YORK ( TheStreet) -- U.S. stock futures were moving higher Friday morning after a strong June monthly employment report and a day after dovish comments from the European Central Bank added confidence that the region's central banks will continue their stimulus measures.
Futures for the S&P 500 were gaining 14.50 points, or 0.9%, to 1623.50.
The Bureau of Labor Statistics reported nonfarm payrolls rose by 195,000 in June as the unemployment rate remained unchanged at 7.6%. Economists polled by Thomson Reuters anticipated non-farm payrolls to have added 165,000 jobs.The report upwardly revised May employment numbers to 195,000 from 175,000. Helping U.S. stock futures Thursday was a surprise move by European Central Bank President Mario Draghi to offer forward guidance by the central bank. The bank said it doesn't plan to raise interest rates and that it expects key rates to remain at present or lower levels for an extended period of time. "In what was probably the most dovish press conference by Mario Draghi, the European Central broke with a longstanding practice," Natixis wrote in a research note on Friday. "Mr Draghi added a dovish touch by saying that the recent rise in inflation from 1.4% to 1.6% reflected mainly upward base effects, in effect that these may not last." U.S. markets were closed on Thursday in observance of Independence Day. European markets were mixed on Friday. The FTSE 100 in London was increasing 0.33%, and the DAX in Frankfurt was slipping 0.64%. Asian markets closed higher overnight as Japan's Nikkei average closed higher by 2.1% at 14,310. Hong Kong's Hang Seng jumped 1.9% to 20,855. The benchmark 10-year was down 12/32, lifting the yield to 2.55%. The dollar was gaining 0.13%, according to the U.S. dollar index. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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