Friday June 2nd

2-06-2017

US stock futures pare gains after jobs reports disappoints

U.S. stock index futures gave back some gains on Friday as investors digested a weaker-than-expected jobs report. Dow futures traded about 55 points higher after the report's release, having traded about 70 points higher before 8:30 a.m. ET. Still, the 30-stock index was set to open at record levels. S&P and Nasdaq futures traded about 2 points higher and 10 points higher, respectively. The U.S. economy added 138,000 jobs in May, well below the consensus number of 185,000. Nevertheless, the unemployment rate decreased to 4.3 percent from 4.4 percent. The report comes amid hopes that the U.S. economy will accelerate after an anemic first quarter that saw GDP increase just 1.2 percent. President Donald Trump has promised his pro-growth agenda will ignite an economy that has shown steady but slow growth since the end of the Great Recession. In Europe, the pan-European Stoxx-600 index was around 0.7 percent higher on Friday. In Asia, the Shanghai Composite in China closed 0.11 percent higher, while the Nikkei in Japan closed 1.6 percent higher. In oil markets, oil prices dropped amid concerns that Trump's decision to pull out of the global climate accord could spark more drilling in the U.S. Brent crude traded at around $49.64 a barrel on Friday, down 1.96 percent, while U.S. crude was around $47.43 a barrel, down 1.9 percent. Gold prices rose on Friday after U.S. non-farm payrolls data was released. A strong reading of jobs data bolsters the likelihood of two interest increases that are expected by the market this year which would dent the appeal of non-interest yielding gold. Spot gold had gained 0.30 percent to $1,269.03 per ounce. It earlier touched its weakest since May 26 at $1,258.60. U.S. gold futures rose 0.17 percent to $1,272.30 an ounce.