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Futures Add to Losses After Gov't Jobs Report

CNBC.com and Reuters
Friday, 6 Jul 2012 | 8:34 AM ET

U.S. stock index futures extended their losses Friday after non-farm payrolls showed employers added less jobs than expected in June.

Non-farm payrolls rose by 80,000, according to the Labor Department, missing expectations for a gain of 90,000 jobs, according to a Reuters poll. Meanwhile, the unemployment rate remained unchanged from May at 8.2, in line with predictions.

"The economic recovery is clearly stuck in quicksand as job creation remains anemic and layoff announcements soar," said Todd Schoenberger, managing principal at The BlackBay group. "It's going to be an extremely difficult second half of 2012 for Americans, as employment worries rise and the household balance sheet continues to deteriorate."

With yet another month of weak employment growth, the second quarter marks the weakest three-month period in two years, fueling optimism that the Federal Reserve will step in with additional monetary easing. Recent economic reports have been dismal with the ISM manufacturing index earlier this week indicating a contraction for the first time since 2009.

Major central banks around the world cut interst rates on Thursday.

The European Central Bank cut rates by a quarter point and the Bank of England moved forward with more quantitative easing. In addition, the People's Bank of China moved forward with surprise rate cuts.

IMF Managing Director Christine Lagarde voiced concern over a slowdown in developed and big emerging economies echoing concerns voiced by ECB President Mario Draghi who said the euro zone economy would recover only gradually.

Yahoo is considering Hulu CEO Jason Kilar for its permanent CEO position, according to reports. Interim CEO Ross Levinsohn is also said to be a candidate, along with News Corp's Jonathan Miller.

Seagate Technology slipped after the storage device maker said it expects to miss its fourth-quarter revenue estimates.

Dynegy filed for bankruptcy protection as part of its settlement agreement with creditors and said it will merge with its unit.

Goldman Sachs has secured three properties in Tokyo for 25 billion yen ($313 million) as its asset management unit prepares to set up a private real estate investment trust (REIT), Shigeki Kiritani, the president of Goldman Sachs Asset Management (GSAM), told Reuters.

—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

On Tap Next Week:

MONDAY: Fed Pres Rosengren, Evans, Williams speak, consumer credit; Earnings from Alcoa
TUESDAY: NFIB small biz optimism index, 3-yr note auction, RIM annual mtg
WEDNESDAY: Weekly mortgage apps, international trade, wholesale trade, oil inventories, 10-yr note auction, FOMC minutes; Earnings from Marriott, Chevron interim results
THURSDAY: Jobless claims, import & export prices, Fed Pres Williams speaks, 30-yr bond auction, Treasury budget, Facebook hearing; Earnings from Fastenal
FRIDAY: PPI, consumer sentiment, Fed pres Lockhart speaks, Dell shareholders mtg; Earnings from JPMorgan, Wells Fargo

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