LONDON (MarketWatch) -- U.S. stock futures dropped Thursday after a report showed that 467,000 jobs were lost in June, far more than economists had forecast and a figure that snapped a run of decreasing job reductions. Extending a decline after the report was released, S&P 500 futures fell 12.2 points to 907.00 and Nasdaq 100 futures dropped 9.5 points to 1,469.20. Futures on the Dow Jones Industrial Average fell 98 points. Nonfarm payrolls shrank by 467,000 in June, higher than the 325,000 decline expected by economists surveyed by MarketWatch and the 322,000 jobs lost in May. The unemployment rate ticked higher to 9.5% in June from 9.4% in the previous month. The dollar rose against the euro after the report. Oil futures extended their slide, falling $1.60 a barrel. Separately, data released in Europe showed the euro-area unemployment rate in May climbing to 9.5% from 9.3% -- one reason the European Central Bank held rates at a record low of 1%. Shortly after the open, factory orders for May will be released. Of companies in the spotlight, Exelon (EXC 51.35, -0.21, -0.41%) increased its all-stock hostile bid for NRG Energy (NRG 25.65, -0.40, -1.54%) to $7.45 billion, or $28.10 using Wednesday's closing prices. Also on the M&A front, Elan (ELN 8.33, +1.33, +19.00%) surged 23% as Johnson & Johnson (JNJ 56.45, -0.62, -1.09%) reached a deal to invest in the Irish firm's Alzheimer's immunotherapy program assets and also inject $1 billion in return for an 18% stake. Illumina (ILMN 32.80, -5.34, -14.00%) fell 14% in pre-market trade after a warning due to a decline in its genetic-testing-equipment business. Sepracor (SEPR 15.00, -2.89, -16.15%) dropped 12% after saying a Phase II trial of a depression drug didn't reduce depression symptoms. The troubled auto sector will be in the spotlight as The Wall Street Journal reported that General Motors (GMGMQ 0.91, -0.18, -16.74%) is hoping for an initial public offering next year while Lear (LEA 0.37, -0.11, -22.92%) said it's looking to file for bankruptcy, though June sales data released Wednesday showed the smallest drop of the year for Ford Motor Co. (F 5.85, -0.06, -1.02%) . Stocks in Europe dropped, led by auto producers, with the pan-Europe Dow Jones Stoxx 600 losing 1.2%. The Hang Seng fell 1.1% in Hong Kong. Data on manufacturing and housing as well as upbeat General Mills results helped U.S. stocks rise on Wednesday, with the Dow Jones Industrial Average rising 57 points, the Nasdaq Composite rising 10 points and the S&P 500 adding 4 points.

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