NEW YORK (TheStreet) -- Stock futures extended losses on Friday after a blowout nonfarm payrolls report for May heralded fears the Federal Reserve will feel more confident raising rates sooner than later.
S&P 500 futures were down 0.33%, Dow Jones Industrial Average futures fell 0.29%, and Nasdaq futures declined 0.35%.
The U.S. economy added 280,000 jobs in May, the Labor Department said Friday, further proof a weak March number was an aberration in a soft first quarter. Economists had expected the economy to add 210,000 jobs in May. April's jobs number was revised down to 221,000 from 223,000.
The unemployment rate ticked up to 5.5% from 5.4%. Hourly earnings rose 0.3% in May, adding to a 2.3% annual rate. The labor force participation rate increased to 62.9% from 62.8%.
"Any doubts about lingering economic weakness in the second quarter, at least as it relates to the labor market, were certainly erased with the release of the May employment report," said Dan Greenhaus, BTIG Research chief strategist. "[Treasury] yields are higher across the board... as investors are clearly coming around to the realization the Fed will almost surely raise rates in 2015."
Treasury yields spiked on the jobs report with the U.S. 10-year yields jumping to a year-to-date high of 2.435%. Treasuries are seen as a safe haven against likely downward pressure for equities ahead of a Fed rate hike.
Stocks sank deep into the red on Thursday as markets sorted through a range of macro worries, including nerves over the jobs report. The S&P 500 and Dow lost nearly 1%. Click here for more.
The Organization of Petroleum Exporting Countries maintained its production target after meeting in Vienna on Friday. The group held production at 30 billion barrels a day despite the global oil market having seen prices plummet since last July. Economists had widely expected that outcome. West Texas Intermediate crude was up 0.74% to $58.43 a barrel after selling off on Thursday.
Greece will miss its repayment due Friday of 303.3 million euros to the IMF and instead repay its four debt obligations in a lump sum at the end of the month. This will allow the debt-ravaged country more time in which to negotiate for extra debt relief from its European creditors. Greece needs to repay the IMF nearly 1.6 billion euros ($1.75 billion) this month.
Dow Chemical (DOW) has defended its CEO Andrew Liveris after Reuters reported he is being investigated by the Securities and Exchange Commission, reportedly for alleged use of company funds for personal use.
Gap (GPS) shares were on watch after the company reported comparable-store sales down 1% in May. Its Old Navy brand was the only arm to report growth.
Yahoo! (YHOO) announced it will shut down some of its services, including Yahoo Maps and Yahoo Mail, as it works to refocus on its search business and digital publishing.
Wal-Mart (WMT) is on watch ahead of its annual meeting at the University of Arkansas on Friday. Of note, shareholders will vote for a proposal in which to establish an independent chairman on the board of directors. Click here for more.