MW: U.S. stock futures add to losses after jobs report beats forecasts
U.S. stock-futures indexes extended losses after the monthly jobs report’s headline number topped expectations, while Greece-fueled worries weighed on European stocks.
Stock-futures for the S&P 500 ESM5, -0.30% fell 5 points, or 0.3%, to 2,093.50, while those for the Dow Jones Industrial Average YMM5, -0.30% was off 47 points, or 0.3%, to 17,876. Futures for the Nasdaq-100 NQM5, -0.39% slid by 16 points, or 0.4%, to 4,479.25.
The Labor Department said the U.S. economy generated 280,000 new jobs in May, beating the gain of 210,000 that was expected by economists polled by MarketWatch. The unemployment rate edged up to 5.5% from 5.4%, but mainly because more people entered the labor force in search of work. Economists had expected an unchanged unemployment rate of 5.4%.
The better-than-expected headline number appeared to boost bets that an interest-rate hike is likely this year by the Federal Reserve. A strong jobs number would support speculation that the Fed will proceed with the first interest-rate hike before the end of the year, said Brenda Kelly, head analyst at London Capital Group, in a note ahead of the jobs report. The higher rates would peel some investors away from riskier assets like U.S. stocks.
The week hasn’t been an easy one for stocks, with the S&P 500 SPX, -0.86% down around 0.6% as of Thursday’s close. The index lost 0.9% on Thursday, as news broke that Greece would bundle its June repayments. It finished under its 50-day moving average, a level closely watched by chart enthusiasts, for the first time since May 7.
Also on the radar Friday for investors is a speech by New York Federal Reserve President William Dudley to the Economic Club of Minnesota at 12:30 p.m. Eastern.
Greek stress: European stocks SXXP, -0.81% tumbled after Greece opted to bundle its June loan payments to the International Monetary Fund, and the country and its creditors continued to struggle over a deal to unlock bailout funds.
The yield on Greece’s 10-year bond jumped, while the yield on the German bund was also climbing. Read: ‘Greece goes Zambia’, ‘desperate scramble’ — what analysts say on IMF payment delay
“The markets do appear to think a deal will be reached, but until it is, we will see choppy trading off the back of ongoing updates,” said Nour Al-Hammoury, chief market strategist at ADS Securities in Abu Dhabi, in a note to investors.
Hacking accusations plague U.S.-China relations(1:27)
The U.S. suspects that Chinese hackers stole the personal records of four million people, the latest in a series of cyberspying accusations the two countries have lobbed at each other.
OPEC stands firm: Crude-oil prices CLN5, +0.24% reversed earlier losses and moved higher after the Organization of the Petroleum Exporting Countries agreed to keep its output unchanged at 30 million barrels a day.
In Asia, the Shanghai Composite SHCOMP, +1.54% closed up 1.5% and topped 5,000, reaching its highest level since January 2008 in a week of sharp volatility for Chinese stocks.
In currencies trading, the ICE dollar index DXY, +0.98% gained 1.2%.
Individual movers and shakers: Shares of J.A. Solar Holdings Co. JASO, +14.98% jumped in premarket action after receiving a proposal to go private.
Meanwhile, Cardinal Health Inc. CAH, -0.47% said it would buy privately-held generics company The Harvard Drug Group in a deal valued at $1.115 billion.
