Markets

U.S. Stock Futures Extend Losses On Disappointing Jobs Report

Various market performance charts

Stock futures were building on their earlier losses in the wake of a below-consensus gain in April non-farm payrolls, the slowest pace of job growth since September 2007. Although the Treasury market was pricing out a June rate hike, stocks remained defensive as indications of the U.S. economy slowing have driven Dow futures more than 70 points below fair value, led by heavy losses in the financial sector.

The Labor Department report showed that non-farm payrolls increased by 160,000 last month, missing the consensus estimate for a 200,000 gain. In addition, the jobless rate remained unchanged at 5.0% versus estimates to drop down to 4.9%. Average hourly earnings increased an as-expected 0.3%, and private payrolls were up 171,000, missing +195,000 estimates.

Overseas markets were also defensive as investors braced for the possibility of a disappointing number after Wednesday's ADP report. Asian market were all lower led by a 2.82% drop in China's Shanghai. European bourses are all currently more than 1% in the red.

-Dow Jones Industrial down 0.39%

-S&P 500 futures down 0.43%

-Nasdaq 100 futures down 0.44%

SENTIMENT

Nikkei down 0.25%

Hang Seng down 1.66%

Shanghai Composite down 2.82%

FTSE-100 down 0.82%

DAX-30 down 0.68%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: Lower

(+/-) Chip stocks: Lower

(+/-) Software stocks: Lower

(+/-) Hardware stocks: Lower

(+/-) Internet stocks: Lower

(+/-) Oil stocks: Lower

(+/-) Biotech stocks: Lower

(+/-) Drug stocks: Lower

(+/-) Financial stocks: Lower

(+/-) Retail stocks: Lower

(+/-) Industrial stocks: Lower

(+/-) Airlines: Lower

(+/-) Autos: Lower

UPSIDE MOVERS:

(+) HLF (+13.00%) Reported better-than-expected Q1 results

(+) YELP (+11.11%) Beat Wall Street estimates for Q1 results

(+) SPPI (+10.45%) Reported a $0.01 profit beating estimates by 34 cents on above consensus revenue

DOWNSIDE MOVERS:

(-) KMPH (-44.16%) FDA votes against abuse-deterrent labelling for pain medication Apadaz

(-) ENDP (-32.83%) Lowered FY16 guidance below street estimates

(-) SQ (-17.47%) Missed Q1 earnings estimates but raised FY16 guidance

(-) FEYE (-10.88%) Posted a wider loss than expected, cut its full-year guidance and replaced CEO Dave DeWalt with Kevin Mandia

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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