Bloomberg News

U.S. Stock Futures Tumble After Jobs Growth Trails Forecasts

July 08, 2011

July 8 (Bloomberg) -- U.S. stock-index futures retreated after the nation added fewer jobs than forecast in June, damping optimism about the economy.

Futures on the Standard & Poor’s 500 Index expiring in September lost 1 percent to 1,338.5 at 8:30 a.m. in New York. Dow Jones Industrial Average futures tumbled 95 points, or 0.8 percent, to 12,586.

Labor Department figures showed U.S. employers added 18,000 workers in June, less than the median economist forecast of 105,000 and the fewest in nine months, while the unemployment rate unexpectedly climbed to 9.2 percent, indicating a struggling labor market.

The S&P 500 has climbed 6.7 percent since the start of last week as Greek lawmakers passed a five-year austerity package, qualifying the country for further aid, and yesterday’s report from ADP Employer Services showed U.S. companies added twice as many jobs as forecast in June. The index is about 10 points shy, or less than 0.8 percent, of a three-year high reached on April 29.

Investors are also turning their attention to the second- quarter earnings season, which unofficially starts on July 11 with Alcoa Inc., the first Dow company to release results. S&P 500 profits are forecast to have grown by 13 percent in the period, according to analyst estimates compiled by Bloomberg.

To contact the editor responsible for this story: Michael Regan at mregan12@bloomberg.net


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