Jobs report gives stocks futures a lift, investors look for signs of recovery

Stock index futures rise on jobs report

A better than expected jobs report boosted stock futures Thursday, as Wall Street appeared to be heading for a modestly higher open.

The Labor Department said that new jobless claims fell more than expected to 550,000 last week and total unemployment rolls dropped. Those continuing to receive benefits fell by 159,000 to nearly 6.1 million, the lowest level since early April.

Analysts had expected new claims to drop to 560,000.

After the report, Dow Jones industrial average futures rose 12, or 0.1 percent, to 9,550. Standard & Poor’s 500 index futures rose 1.70, or 0.2 percent, to 1,034.20, while Nasdaq 100 index futures rose 4.25, or 0.3 percent, to 1,670.25.

The U.S. futures had been mixed in advance of the labor report. Stock prices in Europe were mixed by midafternoon after surging in Asia.

A Federal Reserve survey released Wednesday had provided some reassurance that the economy is showing signs of stabilization.

All but one of the Fed’s 12 regions indicated economic activity either was “stable,” showed “signs of stabilization” or had “firmed,” according to the Fed’s survey. The one exception was the St. Louis region, which reported the economic decline is “moderating.”

That helped the stock market extend its gains to a fourth day as the Dow rose almost 50 points to its second-highest close of the year. The S&P 500 index rose to an 11-month high.

In corporate news Thursday, Corning Inc. and General Mills Inc. both provided improved earnings outlooks.

Corning, a specialty glass maker, said it expects higher than previously forecast sales volume for the third quarter. General Mills said its fiscal first-quarter earnings per share topped the food maker’s expectations, helped by margin improvement and growth of its food brands.

Meanwhile, bond prices were mixed Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.45 percent from 3.48 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.14 percent from 0.13 percent late Wednesday.

The dollar fell against other major currencies early Wednesday morning, while gold prices also fell.

Overseas, Japan’s Nikkei stock average rose 2 percent. In afternoon trading, Britain’s FTSE 100 was down 0.8 percent, Germany’s DAX index was up less than 0.1 percent, and France’s CAC-40 was down 0.5 percent.