US stock futures jump after Labor Department reports stronger-than-expected jobs growth
NEW YORK -- Stock futures jumped Friday after the Labor Department reported unexpectedly strong jobs growth in October, giving investors hope that a healthy job market may offset a housing downturn and concerns about credit.
The Labor Department said employers added 166,000 jobs to their payrolls in October, the most since May. The number was nearly double the 85,000 additional positions Wall Street economists had expected, according to a survey by Thomson/IFR. The robust jobs growth reinforced investor confidence in the job market, which has been one of the economy's stronger pillars.
The unemployment rate held steady at 4.7 percent, in line with September and analysts' consensus forecast.
Dow Jones industrial average futures rose 42.00 to 13,650.00. Standard & Poor's 500 index futures rose 4.30 to 1,520.10. Nasdaq 100 index futures gained 12.8 to 2,228.20.
Wall Street appeared poised for a recovery from plunging stock prices a day earlier, when the Dow tumbled more than 360 points amid worries that the U.S. could be stuck in a period of slowing economic growth and rising inflation -- and that the Federal Reserve would refrain from further interest rate cuts to ensure that inflation doesn't get out of hand.
Bond prices fell. The yield on the 10-year Treasury note, which moves opposite the price, rose to 4.38 percent from 4.35 percent late Thursday.
This week has brought a jumble of contradictory economic news.
The market on Thursday was unnerved by news that consumers cut back their spending in September and that the manufacturing sector expanded in October at the slowest pace since March. But earlier in the week, an initial estimate of third-quarter economic growth came in stronger than economists had expected, at 3.9 percent.
Oil prices rebounded in preopening trading on the New York Mercantile Exchange, after dropping sharply a day ago. Prices have been exceptionally volatile in recent days as the market treads through record territory. A barrel of oil rose 79 cents to $94.28.
The dollar traded mixed against other major currencies.
As U.S. stock futures rebounded, European stock markets pared back earlier losses. Britain's FTSE 100 fell 0.58 percent, Germany's DAX index shed 0.49, and France's CAC-40 declined 0.30 percent.
Asian markets tumbled in the wake of Wall Street's losses on Thursday. Japan's Nikkei stock average fell 2.09 percent, while Hong Kong's Hang Seng index fell 3.25 percent.