Futures Extend Losses After Jobs Report

US stock futures extended their losses Friday after a report showed fewer jobs were added to nonfarm payrolls last month and most of those were temporary census workers.

US employers added 431,000 jobsto nonfarm payrolls in May, but 411,000 of those were temporary census workers. The private sector added just 41,000 jobs: Manufacturing, temporary help and mining added jobs, while construction declined. That number was also well short of the more than 500,000 economists had expected. The unemployment rate, however, fell to 9.7 percent from 9.9 percent in April.

"This number is extremely disappointing," said Todd Schoenberger, managing director at LandColt trading. However, he said, it should come as no surprise. "Considering first time jobless claims have been inching higher over the past four weeks ... and GDP came in at a lackluster 3%, American companies are going to be reluctant to hire."

"The two areas of potential vulnerability for the economy remain payrolls and housing and they're both staggering a good deal," Art Cashin, director of floor operations at UBS, said on CNBC this morning. "From a market standpoint, I think we're going to switch over and start issuing Dow 10,000 helmets!"

Still, one encouraging sign on the jobs frontcame Thursday: Indeed.com, a search engine for job listings, reported that listings were up in all 12 industries the company tracks, with the biggest jumps in transportation, retail and hospitality listings.

Futures had already been pointing lower as European shares tumbled amid rumors that SocGen may be having trouble with its derivatives operations, and US futures followed.

Adding to the worries about Europe, a spokesperson for Hungary's prime minister said the country is also at risk for a financial crisis, piling on to worries about Greece, Spain and Portugal.

Three top Federal Reserve officials said on Thursday it may soon be time to begin raising interest rates as the economic recovery gains momentum, despite persistently high unemployment. Thomas Hoenig, president of the Kansas City Fed, argued the U.S. central bank should raise benchmark borrowing costs from near zero to 1 percent by the end of summer.

But other economists believe the Fed has few reasons to be hawkish, with a litany of dark clouds hovering, from Europe's debt crisis and subsequent austerity measures, the inflation-deflation see-saw, the Gulf oil spill and the stock market pullback.

BP shares rebounded slightly in European trading after the company made a promising step in the containment effort, putting a cap on the gushing Gulf oil well. Earlier this week, BP shares saw their largest intraday drop in almost twenty years.

President Obama will be visiting the Gulf region today, his third visit since the spill. And BP CEO Tony Hayward will hold a conference call with shareholders today, starting at 9am ET.

Walmart will hold its annual shareholder meeting today. Shareholders are expected to put executives on the hot seatas the stock is down over 3 percent for the year and a key revenue indicator has fallen for four straight quarters.

Boeing said it plans to boost international salesto offset weakness in the U.S. as the government reins in defense spending.

Sprint's new 4G phone goes on sale today. Apple is expected to debut a new version of the iPhoneon Monday but the early buzz is that it may not be a dazzler.

Martek Biosciences bgeat earnings expectations and projected its full-year earnings would top forecasts.

On Thursday, stocks eked out a gainafter a choppy session as techs rallied and energy stocks staged a late-day rebound.

Still to Come:

FRIDAY: BP shareholder conference call; Walmart shareholder meeting; Sprint 4G phone goes on sale; Fed's Lockhart speaks

SUNDAY: Buffett lunch auction