Markets

Futures Extend Gains on Strong Jobs Report

Stock futures have extended their earlier gains in the wake of a much better-than-expected increase in September non-farm payrolls, as well as a sizeable drop in the jobless rate to a 6-year low. Although the strength of the data could alter the Federal Reserve's timetable of raising U.S. rates, the reaction from global equity markets suggests that investors are ready to start buying back equities after four straight days of heavy losses.

The Labor Department reported that 248,000 new jobs were created in September, pushing the jobless rate to 5.9% from 6.1% the month prior. Both numbers beat expectations for a 215,000 gain in payrolls and a 6.1% unemployment rate. In addition, July and August were both revised upward; August to +180,000 from +142,000 prior, July to +243,000 from +212,000. But while wages were unchanged, the overall strength in the data compensated for the anemic pace of wage increases.

Overshadowed by the pivotal jobs data was a modest decline in the trade deficit as a result of record high oil exports to $40.1 billion from a revised $40.3 billion in July. The street was expecting a deficit of $40.6 billion in August.

The remaining data includes the final Purchasing Managers services index for September, expected to decline to 58.7 from the flash reading of 59.5. Also, the ISM services index for September will also decline to 58.8 from the final September read of 59.6.

-Dow Jones Industrial up 0.59%

-S&P 500 futures up 0.66%

-Nasdaq 100 futures up 0.66%

SENTIMENT

Nikkei up 0.30%

Hang Seng up 0.57%

Shanghai Composite up 0.26%

FTSE-100 up 1.04%

DAX-30 down 1.99%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: Higher

(-) Chip stocks: Higher

(-) Software stocks: Higher

(-) Hardware stocks: Higher

(-) Internet stocks: Higher

(-) Drug stocks: Higher

(-) Financial stocks: Higher

(-) Retail stocks: Higher

(-) Industrial stocks: Higher

(-) Airlines: Higher

(-) Autos: Higher

UPSIDE MOVERS:

(+) RSH (+37.37%) Reached a $590 mln refinancing deal to avoid bankruptcy

(+) RMTI (+13.07%) Entered into a long-term agreement with Baxter Healthcare to commercialize Hemodialysis

(+) DRTX (+9.47%) FDA granted Special Protocol Agreement for Phase-3 study of Dalvance

(+) TKMR (+4.83%) Developing treatments for Ebola

DOWNSIDE MOVERS:

(-) CLF (-3.00%) Nomura downgraded the stock to Reduce from Buy

(-) AAPL (-0.31%) Downgraded at Deutsche Bank to Hold, PT cut $3

(-) LGCY (-4.50%) Announced public offering of 10 million units representing limited partner interests

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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