June 3 (Bloomberg) -- U.S. stock futures slid, signaling benchmark indexes may extend a fifth-straight weekly loss, after lower-than-forecast growth in employment added to evidence the economic recovery is faltering.
Futures on the Standard & Poor’s 500 Index expiring this month lost 1.1 percent to 1,298.3 at 8:32 a.m. in New York. Dow Jones Industrial Average futures fell 119 points, or 1 percent, to 12,119.
Payrolls increased by a less-than-projected 54,000 last month, after a revised 232,000 gain in April that was smaller than initially estimated, Labor Department figures showed today in Washington. The median forecast in a Bloomberg News survey called for payrolls to rise 165,000. The jobless rate climbed to
the highest level this year from 9 percent a month earlier.
The S&P 500 tumbled to a six-week low this week following ADP Employer Services’ jobs report and separate data from the Institute for Supply Management that showed manufacturing expanded at the slowest pace in more than a year. Citigroup Inc.’s U.S. Economic Surprise Index, which tracks the rate at which data are beating or missing estimates, turned negative in May and is near its lowest level since January 2009.
Stocks fell yesterday as more data showed the economic recovery is slowing. Orders placed with U.S. factories fell in April by the most in nearly a year as demand for aircraft waned and Japan’s earthquake restrained auto-related supplies. A separate report showed that more Americans than forecast filed applications for unemployment benefits last week, signaling the job market is weakening as employers trim staff to cut costs.
More than $652 billion has been erased from U.S. equity markets since the S&P 500 peaked at an almost three-year high of 1,363.61 on April 29, pushing the index’s valuation to 13.2 times estimated profit for 2011 from 13.8 times.
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