MW: U.S. stock futures little changed after jobs report
After a brief jolt higher, U.S. stock futures were largely flat on Friday after a much stronger-than-expected monthly jobs report underscored that the labor market remains robust.
The U.S. economy generated 242,000 new jobs in February, snapping back from a modest slowdown in hiring in the first month of 2016. The total handily exceeded economists’ expectations. The unemployment rate held steady at 4.9% while the participation rate moved up to the highest level since May, as more than half a million people joined the labor force.
But the report also showed a drop in hourly wages and in the number of hours worked.
“The jobs number was good, but not strong enough to prompt the Federal Reserve to raise rates at its March meeting. However, data at this rate justify higher rates and we should probably expect one or two increases this year,” said Jack Ablin, chief investment officer at BMO Private Bank.
The main indexes are on track to log their third straight weekly gain. S&P 500 futures ESH6, +0.04% were down 0.25 point, or less than 0.1%, at 1,990.25 after switching between small gains and losses earlier. Dow Jones Industrial Average futures YMH6, +0.01% tacked on 7 points to 16,926, while Nasdaq-100 futures NQH6, -0.19% gained 3.25 points, or 0.1%, to 4,323.50.
On Thursday, the S&P 500 SPX, -0.01% closed 0.4% higher, while the Dow DJIA, +0.03% gained 0.3% and the Nasdaq Composite COMP, -0.10% added 0.1%. Each benchmark has advanced for three days in a row.
As of Thursday’s close, the S&P is on track for a weekly gain of 2.3%, the Dow is up 1.8%, and the tech-heavy Nasdaq has climbed 2.6%. All three gauges are on pace for a third straight weekly gain.
Other markets: Oil futures CLJ6, +1.04% gained ground after wobbling earlier. European stocks SXXP, +0.19% were higher, while Asia closed mostly with gains. Gold futures GCJ6, +1.44% advanced, and a key dollar index DXY, -0.47% was little changed.
Other data: Beyond the jobs report, U.S. exports fell in January for the fourth month in a row and hit the lowest level since mid-2011, acting as a weight on the economy that’s unlikely to fade soon.
A Baker Hughes report on North America’s oil and gas rig count is due at 1 p.m. Eastern, and that release could spark moves by oil futures and energy-related stocks.
Individual movers: Shares in Hewlett Packard Enterprise Co. HPE, +15.70% jumped 9% in premarket action after the IT provider late Thursday posted adjusted profit and revenue that beat expectations.
Shares in Carmike Cinemas Inc. CKEC, +16.85% gained 17% premarket following Thursday’s news that AMC Entertainment Holdings Inc. AMC, +4.92% plans to buy Carmike for $1.1 billion and become the largest U.S. movie-theater operator.
SunEdison Inc. SUNE, +19.74% climbed 18% following news of a settlement with Latin America Power shareholders.
H&R Block Inc. HRB, -14.91% fell 12% premarket after the tax preparer late Thursday disclosed a wider-than-expected loss.
Retailers Staples Inc. SPLS, -2.74% and Big Lots Inc. BIG, +3.49% reported quarterly results before the open, with Staples disappointing on profit and revenue. Big Lots delivered stronger-than-expected adjusted profit and weaker-than-anticipated revenue, as it hiked its dividend.
Facebook Inc. FB, -0.82% shares may be active after a report that the social media company has overhauled its tax structure to no longer feed sales to major U.K. advertisers through its international headquarters in Ireland, meaning it may face a higher tax bill.
