U.S. stock-index futures mostly erased their gains on Friday as a drop in the labor pool dampened investor cheer over the the government's nonfarm payrolls report for April, which otherwise largely exceeded expectations.
"Today's employment report is quite strong on its face but some beneath the headline data points mitigate our enthusiasm. Investors are likely to find this report mixed and unclear," Dan Greenhaus, chief strategist at BTIG, emailed.
The report had 288,000 jobs created in April from an upwardly revised 203,000 in March, with the jobless rate at 6.3 percent. Expectations called for the addition of 210,000 jobs during April. Analysts polled by Reuters also saw unemployment falling to 6.6 percent.
"The big question that'll come in is the labor participation rate, that's going to be the constant concern here," said Art Hogan, market strategist at Wunderlich Securities, referring to the numbers of those looking for work as declining by 806,000.