U.S. stock index futures pointed to a sharply higher open on Friday as surprising May jobs data provided the most definitive evidence the recession was easing.
U.S, employers cut 345,000 jobs last month, the fewest since September, the government said, far less than the forecast of 520,000, while job losses in March and April were revised downward. But the unemployment rate rose to 9.4 percent, the highest since a matching rate in July 1983, from 8.9 percent in April.
I look through these numbers, and I'm trying to find something that is very disappointing, and I am very hard-pressed, said Hugh Johnson, chief investment officer at Johnson Illington Advisors in Albany, New York.
It seems to be consistent with the current view that although we are in a recession, the recession is clearly getting less worse.
S&P 500 futures rose 13.20 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones Industrial Average futures added 116 points, while Nasdaq 100 futures gained 13.50 points.
Construction industry payrolls fell 59,000 after dropping by 108,000 in April, providing a lift to home builder shares, such as Pulte Homes Inc
Global miner Rio Tinto
The Journal also reported the Federal Deposit Insurance Corp is aiming to shake up Citigroup Inc's
A U.S. federal appeals court will hear arguments on Friday to block the sale of Chrysler LLC to a group including Italian carmaker Fiat SpA
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)