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U.S. futures mixed after poor employment data; Dow Jones down 0.07%

Published 06/04/2012, 07:03 AM
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Investing.com - U.S. stock futures were mixed on Monday, as grim employment data from the U.S. fueled expectations for further easing by the Federal Reserve while concerns over the debt crisis in the euro zone continued to weigh on market sentiment. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.07%, S&P 500 futures signaled a 0.18% gain, while the Nasdaq 100 futures indicated a 0.21% rise.

The U.S. Department of Labor said on Friday that the economy added just 69,000 jobs in May, far below expectations for a gain of 150,000, while the unemployment rate ticked up to 8.2% from 8.1%.

The weak data added to concerns over the strength of the U.S. economic recovery and fuelled speculation over the possibility of a third round of quantitative easing from the Fed.

Investors were also eyeing developments in the euro zone, after data showed that unemployment in the single currency bloc rose to a record high of 11% in April and as fears that Spain may soon require an international bailout persisted.

Concerns over a deeper-than-expected slowdown in China also weighed amid fading hopes for a large-scale stimulus package to boost slowing growth in the world’s second largest economy.

Pharmaceuticals were expected to be active after a trial of Johnson & Johnson's Zytiga showed that the treatment doubled the amount of time certain prostate cancer patients lived without the disease getting worse.

Meanwhile, an experimental Bristol-Myers Squibb drug was reported to have helped shrink tumors in patients with advanced melanoma, kidney and lung cancers in a preliminary trial.

Tech stocks were also likely to move on Monday, as Microsoft was expected to announce new features and media partnerships for the Xbox and its motion sensor accessory, the Kinect, as well as new games.

In addition, opening statements were set to begin in Hewlett-Packard's lawsuit against Oracle over the Itanium chip. HP sued Oracle in a California state court for breach of contract after Oracle decided to discontinue support for the Itanium microprocessor.

Elsewhere, Reuters reported earlier that American Airlines failed to agree on cost-cutting measures with its flight attendants’ union, paving the way for a judge to rule on voiding the contract for the bankrupt carrier.

Also in corporate news, Ford Motors was said to be in talks with local partners to introduce indigenous brands in China.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 climbed 0.60%, France’s CAC 40 advanced 0.58%, while Germany's DAX tumbled 0.97%. Markets in the U.K. remained closed for a national holiday.

During the Asian trading session, Hong Kong's Hang Seng Index sank 2.2%, while Japan’s Nikkei 225 Index tumbled 1.75%.

Later in the day, the U.S. was to produce official data on factory orders.


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