Markets

Futures Trim Gains on Below-Consensus May Payroll

Stock futures surrendered some of Friday morning's substantial gains in the wake of a less-than-expected gain in May non-farm payrolls, but are still trading higher with the S&P 500 and Nasdaq poised to open at record highs.

Although the unemployment rate dropped to 4.3% as jobseekers exited out of the market, the economy added just 138,000 new jobs last month, below the consensus estimate for a gain of 185,000.

And average hourly earnings increased by an anemic 0.2% following a downward revised 0.2% gain in April.

Eclipsed by the payroll report was a widening in the U.S. trade deficit in April to $47.6 billion from a revised deficit of $45.3 billion.

European markets are turning in some of their overnight gains as well in sympathy with their U.S. counterparts but remaining solidly in positive territory. Asian markets closed higher with Japan's Nikkei rallying over 20,000 for the first time in nearly a year and a half.

Oil futures are being crushed again on Friday after President Donald Trump said he was pulling the U.S. out of the Paris Accord, opening the door for increased oil and coal production. Brent crude is trading at its lowest level in three weeks with four consecutive days of lower lows and lower highs, a bearish technical formation.

-Dow Jones Industrial up 0.21%

-S&P 500 futures up 0.09%

-Nasdaq 100 futures up 0.20%

SENTIMENT

Nikkei up 1.60%

Hang Seng up 0.44%

Shanghai Composite up 0.11%

FTSE-100 up 0.21%

DAX-30 up 1.21%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: Higher

(+) Chip stocks: Higher

(+) Software stocks: Higher

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(-) Oil stocks: Lower

(+) Biotech stocks: Higher

(+) Drug stocks: Higher

(+) Financial stocks: Higher

(+) Retail stocks: Higher

(+) Industrial stocks: Higher

(+/-) Airlines: Flat

(+) Autos: Higher

UPSIDE MOVERS:

(+) CGG (+23.02%) Agreed to restructuring plan with main creditors

(+) LULU (+15.47%) Reported stronger-than-expected Q1 results, raised FY17 EPS guidance

(+) GOOS (+11.17%) Reported narrower-than-expected loss, revenue tops estimates

DOWNSIDE MOVERS:

(-) RH (-20.87%) Lowered FY17 EPS guidance

(-) SVRA (-11.26%) Announces public offering

(-) ZUMZ (-7.99%) Issued weak Q2 outlook

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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