By Barbara Kollmeyer, MarketWatch
Economy adds 223,000 jobs in April, unemployment rate at
5.4%
U.S. stock-index futures rose sharply after the release of
nonfarm-payrolls data, which showed a healthy pace of job growth in
April.
The U.S. economy added 223,000 jobs in April, while the
unemployment rate fell to 5.4%, in line with expectations.
Futures for the Dow Jones Industrial Average (YMM5) were up 167
points to 18,056, blue-chip index futures had flirted with
200-point levels until falling back. Those for the S&P 500
index (ESM5) added about 20 points to 2,104. Futures for the
Nasdaq-100 index (NQM5) added 44 points to 4,446.75.
Scott Wren, Senior Global Equity Strategist at Wells Fargo
Investment Institute, said the jobs number was good but not great
and exactly what market wanted.
"It was a healthy jobs number, indicating the economy is doing
ok, but it's unlikely to sway the Federal Reserve too much," Wren
said.
"Despite the 5.4% unemployment rate, we believe there are still
too many people who are part-time or marginally attached, which is
why we are not seeing wage increases," Wren said.
Wall Street stocks recovered some of the losses from two
previous session on Thursday,
(http://www.marketwatch.com/story/us-stock-futures-tumble-amid-global-stock-selloff-2015-05-07)
thanks to a calming of global bond-market unrest, which were
underscored by sharp moves in German bunds. The S&P 500 (SPX)
closed up 0.4% to 2,088, with all main sectors except for energy
advancing.
Gains for overseas stocks helped inspire some positive momentum
for U.S. stock futures. The FTSE 100 index surged
(http://www.marketwatch.com/storyno-meta-for-guid) on news of an
expected election victory
(http://www.marketwatch.com/story/conservatives-on-course-for-election-victory-in-the-uk-2015-05-08)
in the U.K. for Conservatives.
Friday's data: April jobs numbers reflect a sharp rebound in
employment numbers after a revised 85,000 gain in March. The
increase in jobs and greater numbers entering the labor force
helped the unemployment rate move to 5.4% from 5.5%, marking the
lowest level since May 2008, the Labor Department said Friday.
Economists polled by MarketWatch had expected a gain of 228,000
nonfarm jobs.
(http://www.marketwatch.com/story/historically-bad-jobs-news-really-is-good-news-for-stocks-2015-05-07)The
average hourly wages rose partly 0.1% last month, while wages in
the past 12 months have risen at a 2.2% rate.
Read: Historically, bad jobs news really is good news for stocks
(http://www.marketwatch.com/story/historically-bad-jobs-news-really-is-good-news-for-stocks-2015-05-07)
Wholesale inventories for March are due at 10 a.m. Eastern.
Stocks to Watch: Shares of Monsanto Co.(MON) could be active
after Swiss agrochemical group Syngenta AG rejected an unsolicited
takeover bid from its U.S. rival
(http://www.marketwatch.com/story/syngenta-rejects-unsolicited-monsanto-proposal-2015-05-08).
Shares of Syngenta surged 19% in Switzerland.
Ahead of the opening bell, AOL Inc.(AOL) reported first-quarter
profit and sales that beat expectations
(http://www.marketwatch.com/story/aols-stock-climbs-after-profit-sales-beat-expectations-2015-05-08).
Shares jumped 4.9% in thin premarket trading.
Liberty Media Corp.(LMCA) is also due to report results before
the open. McDonald's Corp.(MCD) shares were 0.8% higher after the
company said sales edged down 0.6% in April, which was less than
expected.
Nvidia Corp.(NVDA) shares slide 4% after the graphics chip
company provided a downbeat sales outlook.
Wal-Mart Stores Inc. (WMT) could be in focus after the retailer
said it would buy locations in Canada
(http://www.marketwatch.com/story/wal-mart-to-buy-canadian-locations-from-target-2015-05-08-7103642)
from rival Target Corp.(TGT)
Other markets: Chinese stocks suffered their biggest weekly
loss, though the index managed a gain of 2.3% on Friday. That
weekly loss is its worst performance since May 2010.
Oil prices (CLM5) turned higher on Friday, with traders keeping
a close eye on U.S. payrolls for later, which could offer clues on
the timing of the Fed's next interest-rate hike. Data that would
encourage hopes for a hike would in turn lift the dollar, but bring
down dollar-denominated oil prices.
Gold (GCM5) was flat, while the British pound
(http://www.marketwatch.com/story/pound-taps-155-as-conservatives-expected-to-win-uk-election-2015-05-08)(GBPUSD)
traded around its highest levels in a week around $1.5445, driven
by news that the Conservative party, viewed as market friendly, is
on course to take power in the U.K. parliament
(http://www.marketwatch.com/story/conservatives-on-course-for-election-victory-in-the-uk-2015-05-08).
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