MW: U.S. stock futures hold decade lows after jobs data
U.S. stock futures held around bear-market lows Friday as the government reported that 651,000 jobs were eliminated from the economy during the last month.
The decline was about in line with expectations, though the government revised data from the last two months to factor in 161,000 more job losses.
The unemployment rate soared to 8.1% in February from 7.6% in the previous month.
After the data, stock futures traded around the flat line: S&P 500 futures rose fractionally to 686.20 and Nasdaq 100 futures fell 3.25 points to 1,076.70. Dow industrial futures dropped 5 points.
U.S. stocks got walloped on Thursday, with Citigroup dropping during part of the day below $1 for the first time in its history on concerns the government will take a still greater stake in the bank that used to be the world's largest. Disappointment that China didn't announce a new stimulus plan also hit markets.
The Dow Jones Industrial Average dropped 281 points, the S&P 500 fell 30 points and the Nasdaq Composite fell 54 points.
Consumer credit data and a pair of speeches from Federal Reserve presidents also will be on the docket.
"On a three-month moving average, consumer credit is falling the most since the early 1990s," noted economists at Barclays Capital. "The incredibly tight credit conditions suggest an even bigger contraction ahead."
The dollar lost ground vs. rivals, notably the Japanese yen which rallied 1%. Gold futures rose about $15 an ounce, and oil futures also rose.
Overseas stock markets were mostly negative, with the Nikkei 225 sliding 3.5% in Tokyo to nearly a 26-year low. The FTSE 100 rose 0.4% in London.
Of stocks in the spotlight, Wells Fargo advanced 6% as the San Francisco bank said it would cut its dividend to five cents a share from 34 cents a share. The move will save the bank $5 billion each year.
Ann Taylor Stores reported a loss of $376 million, sending the stock down 19% in pre-market trade.
Marvell Technology rose 9% as the company's fourth-quarter results were better than forecast and the chipmaker outlined plans to cut 15% of its workforce.
