BLBG:U.S. Stock Futures Rise as Job Growth Misses Estimates
U.S. stock-index futures extended gains after data showed payrolls climbed less than projected in August, as investors weighed whether the Federal Reserve will reduce stimulus measures.
Futures on the Standard & Poor’s 500 Index (SPX) rose 0.4 percent to 1,660.3 at 8:35 a.m. in New York.
Employers added 169,000 workers last month following a revised 104,000 rise in July that was smaller than initially estimated, Labor Department figures showed today in Washington. The median forecast of 96 economists surveyed by Bloomberg called for an August increase of 180,000. The unemployment rate unexpectedly fell to 7.3 percent as more people left the labor force.
Fed policy makers have been weighing data to determine whether the economy is strong enough for it to scale back the pace of its $85 billion in monthly bond buying. The Fed said Sept. 4 that the economy maintained a modest to moderate pace of growth.
Fed Bank of Chicago President Charles Evans, a voter on policy this year, said today the central bank shouldn’t taper its $85 billion in monthly bond buying until inflation and economic growth pick up. He has consistently supported record stimulus.
Richard Fisher, the Fed Bank of Dallas president who has opposed additional stimulus and votes on policy next year, said yesterday that the central bank must ensure its bond buying program doesn’t disrupt financial markets.
Officials will probably decide to buy fewer assets at their next meeting, according to 65 percent of economists surveyed by Bloomberg on Aug. 9-13. The Federal Open Market Committee gathers on Sept. 17-18.
The FOMC pledged in December 2012 to keep interest rates near zero at least as long as unemployment exceeds 6.5 percent and inflation doesn’t rise above 2.5 percent.
The S&P 500 rose for a third day yesterday amid data showing service industries expanded in August. The gauge has added 1.4 percent so far this week, rebounding from the worst month since May 2012.
To contact the reporter on this story: Tom Stoukas in Athens at astoukas@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
