August 3, 2012
--Stock futures extend gains after closely watched July jobs report
--Europe rebounds sharply as investors reassess ECB comments
--Nonfarm payrolls top expectations; unemployment unexpectedly ticks up
By Matt Jarzemsky and Tomi Kilgore
NEW YORK--U.S. stock futures rose, signaling a rebound from a recent string of losses, after data showed better-than-expected domestic job growth last month.
Dow Jones Industrial Average futures ran up 129 points, or 1%, to 12960 less than an hour before the opening bell. The Dow fell 92.18 points, or 0.71%, on Thursday to stretch its losing streak to four sessions.
Standard & Poor's 500-stock index futures climbed 17 points, or 1.2%, to 1378, and Nasdaq 100 futures advanced 32 points, or 1.2%, to 2651. Changes in stock futures don't always accurately predict stock moves after the opening bell.
U.S. payrolls increased by a seasonally adjusted 163,000 jobs in July, the Labor Department reported in its broadest snapshot of the job market, topping economists' expectation for an addition of 95,000 workers. The unemployment rate ticked up one-tenth of a percent to 8.3%, versus expectations for it to remain flat.
At 10 a.m. EDT, the Institute of Supply Management's nonmanufacturing composite index for July is seen inching lower to 52 from 52.1 in June.
Among individual stocks seeing premarket activity, shares of Knight Capital Group rose 5.4%, erasing earlier sharp losses. The stock had plunged 75% over the previous two sessions as an electronic-trading glitch affected the trading of about 150 stocks and will likely cost the brokerage firm $440 million.
European markets were sharply higher, with the Stoxx Europe 600 climbing 1.5%, as investors digested comments made by European Central Bank President Mario Draghi on Thursday and after some better-than-expected euro-zone data.
Mr. Draghi initially disappointed investors by not announcing new action--the Stoxx Europe 600 fell 1.3% on Thursday--but markets have since reacted positively to plans being drawn up by the ECB to address the region's sovereign-debt crisis, including the purchase of short-dated debt. Yields on two-year Spanish and Italian bonds have fallen sharply, and the euro has rallied.
Spain's IBEX-35 index surged 2.9% after sliding 5.2% on Thursday.
In addition, euro-zone retail sales rose slightly in June compared with expectations of a slight decline and the final composite purchasing managers' index edged up to 46.5 in July from 46.4 in June. The services PMI increased to 47.6 from 47.1 in June.
Asian markets closed mostly lower on the back of Thursday's weakness in the U.S., with Japan's Nikkei Stock Average shedding 1.1% and Australia's S&P/ASX 200 giving up 1.1%. Meanwhile, China's Shanghai Composite rallied 1% on a reduction in stock fees and after China's central banks said it would make stabilizing economic growth a bigger priority.
Crude oil futures rose 1.1% to $88.15 a barrel, while gold futures gained 0.1% to $1592.20 an ounce. The U.S. dollar fell against the euro but rose versus the yen.
Elsewhere, Procter & Gamble rose 2.1% after the blue-chip consumer-products giant reported earnings that exceeded its expectations and said it would buy back $4 billion worth of common stock in the current year, offsetting a downbeat outlook for the current quarter.
Fellow Dow component Kraft Foods was up 1.5% in light premarket trading after reporting second-quarter earnings that topped analysts' estimates, and said the spinoff of its North American grocery business is expected to occur after the close of trading on Oct. 1.
Zipcar tumbled 32% after the car-rental company trimmed its revenue outlook for the year and said it brought in fewer new members than anticipated.
Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com
US Stock Futures Climb After Upbeat Jobs Data
--Stock futures extend gains after closely watched July jobs report--Europe rebounds sharply as investors reassess ECB comments
--Nonfarm payrolls top expectations; unemployment unexpectedly ticks up
By Matt Jarzemsky and Tomi Kilgore
NEW YORK--U.S. stock futures rose, signaling a rebound from a recent string of losses, after data showed better-than-expected domestic job growth last month.
Dow Jones Industrial Average futures ran up 129 points, or 1%, to 12960 less than an hour before the opening bell. The Dow fell 92.18 points, or 0.71%, on Thursday to stretch its losing streak to four sessions.
Standard & Poor's 500-stock index futures climbed 17 points, or 1.2%, to 1378, and Nasdaq 100 futures advanced 32 points, or 1.2%, to 2651. Changes in stock futures don't always accurately predict stock moves after the opening bell.
U.S. payrolls increased by a seasonally adjusted 163,000 jobs in July, the Labor Department reported in its broadest snapshot of the job market, topping economists' expectation for an addition of 95,000 workers. The unemployment rate ticked up one-tenth of a percent to 8.3%, versus expectations for it to remain flat.
At 10 a.m. EDT, the Institute of Supply Management's nonmanufacturing composite index for July is seen inching lower to 52 from 52.1 in June.
Among individual stocks seeing premarket activity, shares of Knight Capital Group rose 5.4%, erasing earlier sharp losses. The stock had plunged 75% over the previous two sessions as an electronic-trading glitch affected the trading of about 150 stocks and will likely cost the brokerage firm $440 million.
European markets were sharply higher, with the Stoxx Europe 600 climbing 1.5%, as investors digested comments made by European Central Bank President Mario Draghi on Thursday and after some better-than-expected euro-zone data.
Mr. Draghi initially disappointed investors by not announcing new action--the Stoxx Europe 600 fell 1.3% on Thursday--but markets have since reacted positively to plans being drawn up by the ECB to address the region's sovereign-debt crisis, including the purchase of short-dated debt. Yields on two-year Spanish and Italian bonds have fallen sharply, and the euro has rallied.
Spain's IBEX-35 index surged 2.9% after sliding 5.2% on Thursday.
In addition, euro-zone retail sales rose slightly in June compared with expectations of a slight decline and the final composite purchasing managers' index edged up to 46.5 in July from 46.4 in June. The services PMI increased to 47.6 from 47.1 in June.
Asian markets closed mostly lower on the back of Thursday's weakness in the U.S., with Japan's Nikkei Stock Average shedding 1.1% and Australia's S&P/ASX 200 giving up 1.1%. Meanwhile, China's Shanghai Composite rallied 1% on a reduction in stock fees and after China's central banks said it would make stabilizing economic growth a bigger priority.
Crude oil futures rose 1.1% to $88.15 a barrel, while gold futures gained 0.1% to $1592.20 an ounce. The U.S. dollar fell against the euro but rose versus the yen.
Elsewhere, Procter & Gamble rose 2.1% after the blue-chip consumer-products giant reported earnings that exceeded its expectations and said it would buy back $4 billion worth of common stock in the current year, offsetting a downbeat outlook for the current quarter.
Fellow Dow component Kraft Foods was up 1.5% in light premarket trading after reporting second-quarter earnings that topped analysts' estimates, and said the spinoff of its North American grocery business is expected to occur after the close of trading on Oct. 1.
Zipcar tumbled 32% after the car-rental company trimmed its revenue outlook for the year and said it brought in fewer new members than anticipated.
Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com
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