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Jul 8, 2016

U.S. Stock Market Future Indications Update, by MarketWatch - July 8, 2016: U.S. Extend Gains After Stellar Jobs Report



marketwatch.com

Anora Mahmudova, Sara Sjolin


U.S. stock futures extended gains on Friday and pointed to a positive day on Wall Street after surprisingly strong jobs report, showing 287,000 jobs created in June.

The jobs gain in June was the biggest increase since last fall and offers reassurance that the economy has rebounded after a soft patch earlier in the year. Economists had been expecting 170,000 new jobs, according to a MarketWatch poll.
The unemployment rate rose to 4.9% from 4.7% as more people entered the labor force in search of work. For more details and analysis, follow the live blog.
Futures for the Dow Jones Industrial Average YMU6, +0.53%  climbed 95 points, or 0.5%, to 17,914, while those for the S&P 500 index ESU6, +0.59%  gained 12 points, or 0.6%, to 2,104. Futures for the Nasdaq 100 index NQU6, +0.42%  rose 19 points, or 0.5%, to 4,470.
Dallas was in turmoil as police officers were shot by two snipers Thursday night during protests. At least five have died.
The Federal Reserve is watching the jobs market closely as it seeks to determine when to next raise interest rates. Wages are seen as a key measure for the central bank’s analysis, as rising salaries could help bring inflation closer to target and thus justify a rate increase.
However, after May’s disappointing report and the Brexit backlash, expectations for a rate increase, once expected to happen a few times this year, have been delayed. According to the CME Fed Watch Tool, investors are currently not pricing in a rate increase this year.
Read: Divided Fed silent in June on timing of next rate hike
In other economic news on Friday, consumer credit data for May are due at 3 p.m. Eastern. There were no Fed speakers on tap.
Oil rebound: Oil futures rose almost 1% on Friday, coming back from losses of nearly 5% on Thursday when a smaller-than-expected weekly decline in crude-oil inventories sent prices tumbling. Crude oil CLQ6, +0.78%  was up 0.9% at $45.53 a barrel, while Brent LCOU6, +0.75%  gained 0.7% to $46.73.
A reading on North America’s oil-rig count from Baker Hughes Inc. BHI, -1.52% is due in the afternoon, and that could shake up oil prices and energy stocks.
U.S. stock markets erased gains and closed mostly lower on Thursday, tracking the slump in oil prices. The S&P 500 index SPX, -0.09%  ended down less than 0.1%, while the Dow average DJIA, -0.13%  fell 0.1%. The Nasdaq Composite Index COMP, +0.36%  rose 0.4%.
Movers and shakers: Shares of Eleven Biotherapeutics Inc. EBIO, -3.45%  soared more than 66% premarket after the drugmaker said its Investigational New Drug application for EBI-031 has become effective. This means the company is entitled to a $22.5 million milestone payment from F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. ROG, -0.59%
Shares in Juno Therapeutics Inc. JUNO, +2.20%  skidded 27% premarket in thin trade. On Thursday, the pharmaceutical company said its study of a cancer drug has been put on hold by the Food and Drug Administration after two patient deaths.
Polycom Inc. PLCM, +0.00%  jumped 8.8% premarket after news that private-equity firm Siris Capital will buy the telecom-equipment maker for $2 billion in cash. Polycom will be obliged to end a previously agreed merger with Mitel Networks Corp. MITL, +0.00%
SemiLEDS Corp. LEDS, +207.65%  slumped 5.4% ahead of the bell. The LED chips maker soared 208% on Thursday on news Peter Chiou will buy 577,000 shares of the company’s common stock at $5.00 per share.
Gap Inc. GPS, -0.73%  shares jumped 5.2% after the apparel retailer said late Thursday that its same-store sales rose 2% in June.
Barracuda Networks Inc. CUDA, +3.40%  shares will likely be in focus after the data security company late Thursday reported first-quarter sales and earnings that beat expectations.
Shares of WD-40 Co. WDFC, +0.28%  could be active after the cleaning and maintenance products company late Thursday cut its revenue projection for the year.
Other markets: European markets SXXP, +1.04%  were mostly higher ahead of the U.S. jobs report.
Meanwhile, all major Asian indexes closed lower. Gold GCQ6, -1.15%  dropped, and the ICE dollar index DXY, +0.33%  slipped 0.2% to 96.131.