US Markets

Futures extend losses on huge jobs beat

U.S. stock futures traded lower on Friday following a far better-than-expected nonfarm payrolls report.

"This is the best number we've seen this year," said Art Hogan, chief market strategist at Wunderlich Securities. He said the beat did not put June back on the table but that September was likely.

Dow futures traded about 50 points lower, slightly off from the 30-point level prior to the data release.

"Valuations are high and the adjustment of the yield curve now is likely to be negative for equities in the short-term," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It's going to be a bumpy trading day for stocks."

Treasury yields traded slightly below session highs. The jobs report sent yields surging, with the 2-year yield jumping above 0.747 percent and U.S. 10-year yields hitting an intraday high of 2.442 percent.

The U.S. dollar extended gains to trade 1 percent against major currencies, while the euro dipped below $1.11 and the yen held near a multi-year high of 125.6 yen against the dollar.

U.S. nonfarm payrolls totaled 280,000 in May with unemployment at 5.5 percent. Average hourly earnings increased by 8 cents, beating expectations. The labor force participation rate gained to 62.9 percent.

Analysts polled by Reuters forecast the U.S. economy created 225,000 new jobs last month, compared with 223,000 in April. The unemployment rate was expected to stay unchanged at 5.4 percent.

Most economic data has showed modest economic growth.

Traders work on the floor of the New York Stock Exchange.
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In its annual assessment of the U.S. economy, the International Monetary Fund (IMF) said on Thursday the Fed should delay a rate hike until the first half of next year until there are signs of a rebound in wages and inflation.

U.S. stocks closed lower on Thursday as volatility in bond markets and a lack of resolution on Greece kept investors on edge ahead of Friday's jobs report.

In Europe, share markets were broadly lower on Friday after Greece delayed a debt payment to the IMF and caution prevailed ahead of the U.S. jobs data.

Greece delayed the IMF payment, due Friday, and urged changes to tough terms demanded by its international creditors in return aid to avoid a default. Uncertainty continued to take a toll on Greek stocks, which fell 5 percent.

Oil prices spiked on news OPEC will maintain output at 30 million barrels per day for another six months, keeping a glut in markets.

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Liberty Global was also in focus after Britain's Vodafone said it was in talks with the U.S. cable firm about an exchange of "selected assets," although a full merger was not under discussion.