US STOCKS-Nasdaq futures jump 1%, Dow negative after weak jobs data
By Shreyashi Sanyal and Sruthi Shankar
May 7 (Reuters) - Futures tracking the Nasdaq jumped more than 1% on Friday as mega-cap growth stocks rallied after a downbeat jobs report eased valuation concerns and worries about the U.S. Federal Reserve reducing its massive stimulus program anytime soon.
The Labor Department's closely watched employment report showed U.S. employers hired far fewer workers than expected in April, with nonfarm payrolls increasing by only 266,000 jobs last month after rising by 770,000 in March.
Economists polled by Reuters had forecast payrolls advancing by 978,000 jobs.
Highly valued stocks such as Microsoft Corp MSFT.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Facebook Inc <FB.O> rose more than 1% each in premarket trading.
"One number doesn't make a trend, but it takes some of the heat off the economy overheating and inflation moving dramatically higher," said Larry Adam, chief investment officer at Raymond James. "This puts less pressure on the Fed to prematurely talk about tapering."
The report also showed unemployment rate rose to 6.1% in April from 6.0% in March.
Economically sensitive cyclical stocks reversed earlier gains, with planemaker Boeing Co BA.N down 0.1%, lender Goldman Sachs Group Inc GS.N falling1.4% and oil major Chevron Corp CVX.N dropping 0.6%.
At 9:06 a.m. ET, Dow e-minis 1YMcv1 were down 32 points, or 0.09%, S&P 500 e-minis EScv1 were up 13 points, or 0.31%, and Nasdaq 100 e-minis NQcv1 were up 154 points, or 1.13%.
The Nasdaq Composite index .IXIC is set to fall 2.3% this week, its worst weekly decline since late February. The S&P 500 .SPX and the Dow Jones Industrial Average .DJI indexes, however, are on track for weekly gains.
Payments firm Square Inc SQ.N rose 4.7% after reporting better-than-expected quarterly profit, as surging demand for bitcoin fueled a jump in cryptocurrency transactions on its application.
Streaming device maker Roku IncROKU.O jumped 11.4% following upbeat revenue outlook, while fitness equipment maker Peloton Interactive PTON.O gained 5.6% as it laid out steps to improve the safety of the equipment.
(Reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.