WASHINGTON (dpa-AFX) - Stronger Than Expected Jobs Data May Weigh On Wall
Street

The major U.S. index futures are currently pointing to a lower open on Friday,
with stocks likely to move to the downside after ending the previous session
little changed.

The futures moved to the downside following the release of a closely watched
Labor Department report showing much stronger than expected job growth in the
month of May.

The Labor Department said non-farm payroll employment surged by 272,000 jobs in
May after climbing by a downwardly revised 165,000 jobs in April.

Economists had expected employment to increase by about 185,000 jobs compared to
the addition of 175,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate crept up to 4.0 percent in May
from 3.9 percent in April. The unemployment rate was expected to remain
unchanged.

While the report is likely to ease recent concerns about the strength of the
U.S. economy, the data is also likely to offset recent optimism about the
outlook for interest rates.

Treasury yields have surged following the release of the report, with the
ten-year yield rebounding from its lowest levels in over two months.

Following the rally seen over the course of Wednesday's session, stocks turned
in a relatively lackluster performance during trading on Thursday. The major
averages spent the day bouncing back and forth across the unchanged line before
eventually closing narrowly mixed.

While the Dow rose 78.84 points or 0.2 percent to 38,886.17, the Nasdaq slipped
14.78 points or 0.1 percent to 17,173.12 and the S&P 500 edged down 1.07 points
or less than a tenth of a percent to 5,352.96.

The choppy trading on Wall Street came as traders seemed to take a step back to
assess the outlook for the markets following Wednesday's surge, which lifted the
Nasdaq and the S&P 500 to new record closing highs.

Traders also stuck to the sidelines ahead of the release of the Labor
Department's closely watched monthly jobs report.

A day ahead of the release of the monthly jobs report, the Labor Department
released a report showing first-time claims for U.S. unemployment benefits rose
by more than expected in the week ended June 1st.

The Labor Department said initial jobless claims climbed to 229,000, an increase
of 8,000 from the previous week's revised level of 221,000.

Economists had expected jobless claims to inch up to 220,000 from the 219,000
originally reported for the previous week.

Meanwhile, the Commerce Department released a report showing the U.S. trade
deficit widened significantly in the month of April, as the value of imports
jumped by much more than the value of exports.

The Commerce Department said the trade deficit surged to $74.6 billion in April
from a downwardly revised $68.6 billion in March.

Economists had expected the deficit to widen to $76.1 billion from the $69.4
billion originally reported for the previous month.

While narrower than expected, the trade deficit in April marked the largest
since the gap reached $75.3 billion in October 2022.

While most of the major sectors ended the day showing only modest moves, gold
stocks moved sharply higher, driving the NYSE Arca Gold Bugs Index up by 3.5
percent.

The rally by gold stocks came amid an increase by the price of the precious
metal.

On the other hand, housing stocks came under pressure over the course of the
session, dragging the Philadelphia Housing Sector Index down by 1.2 percent.

Airline stocks also showed a notable move to the downside on the day, with the
NYSE Arca Airline Index falling by 1.2 percent.

Commodity, Currency Markets

Crude oil futures are rising $0.30 to $75.85 a barrel after surging $1.48 to
$75.55 a barrel on Thursday. Meanwhile, after climbing $15.40 to $2,390.90 an
ounce in the previous session, gold futures are plunging $53.10 to $2,337.80 an
ounce.

On the currency front, the U.S. dollar is trading at 156.67 yen versus the
155.61 yen it fetched at the close of New York trading on Thursday. Against the
euro, the dollar is valued at $1.0833 compared to yesterday's $1.0890.

Asia

Asian stocks ended mixed on Friday but managed to snap a two-week losing streak
following interest rate cuts from the European Central Bank and the Bank of
Canada.

Sluggish U.S. economic data also spurred hopes for rate cuts by the Federal
Reserve, while China reported mixed trade data.

U.S. Treasuries were little changed, and the dollar held near an eight-week low
against a basket of currencies ahead of key U.S. jobs data due later in the day
that could influence the timing and pace of Fed rate cuts.

Gold held steady near a two-week high and was set for its first weekly gain in
three. Oil prices were little changed after two days of gains as OPEC ministers
said the cartel could revise its oil supply deal if needed.

China's Shanghai Composite Index finished marginally higher at 3,051.28 after
the release of mixed trade data. Hong Kong's Hang Seng Index shed 0.6 percent to
close at 18,366.95.

Chinese exports posted annual growth of 7.6 percent following a 1.5 percent
increase in April, the Customs Administration reported today, while analysts had
forecast 6.0 percent growth.

At the same time, growth in imports decelerated to 1.8 percent from 8.4 percent
in the previous month.

Japanese markets ended marginally lower amid speculation that the Bank of Japan
may drop clues on bond tapering plan when authorities meet next week.

Investors also reacted to data that showed Japanese household spending rose for
the first time in 14 months in April from a year earlier, but consumers were
reluctant to loosen their purse strings in the face of higher prices.

Mitsubishi UFJ Financial Group fell 1.7 percent, while Sumitomo Mitsui Financial
Group edged up slightly after reports that they will divest approximately 1.32
trillion yen or $8.5 billion worth of strategic shareholdings in Toyota Motor
Corp. Toyota shares declined 1.7 percent.

Seoul stocks rallied, with the Kospi jumping 1.2 percent to 2,722.67 on
increased hopes for U.S. rate cuts. Heavyweight Samsung Electronics ended
slightly lower for the day as the largest union at the company in South Korea
went on strike for the first time in the company's 55-year history.

Australian stocks eked out modest gains, with gold miners leading the charge.
Resolute Mining, St Barbara and Regis Resources surged 4-7 percent as bullion
prices increased on Fed rate cut hopes.

The benchmark S&P/ASX 200 Index rose 0.5 percent to 7,860, while the broader All
Ordinaries Index ended 0.5 percent higher at 8,112.80.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index ended down 1.0
percent at 11,856.56.

Europe

European stocks have moved mostly lower during trading on Friday, with selling
pressure accelerating following the release of the U.S. jobs data.

While the U.K.'s FTSE 100 Index is down by 0.7 percent, the German DAX Index and
the French CAC 40 Index are both down by 1.0 percent.

According to the third estimate by Eurostat, the Eurozone economy grew by 0.3
percent in the first quarter compared to the previous quarter, in-line with
consensus.

France's trade deficit increased in April as a result of increased imports and a
fall in exports, while German export and import growth accelerated in April,
separate reports revealed.

German industrial production dropped at a slower pace in the month, Destatis
reported.

Elsewhere, the Confederation of British Industry has upped its forecasts for
U.K. growth to 1 percent in 2024 and 1.9 percent in 2025, citing an expected
pick-up in consumer spending.

The U.K. house market remained broadly stable with a marginal fall in house
prices in May, data from the mortgage lender Halifax showed.

...

In corporate news, Swiss banking software firm Temenos has shown a notable move
to the upside on share buyback news.

C&C Group shares have tumbled in London. Patrick McMahon, the chief executive of
the drinks' maker, has stepped down from his position with immediate attack
after the discovery of accounting errors.

Homebuilder Bellway has moved notably higher after raising its annual average
selling price forecast.

Rexel Group shares have fallen in Paris. The distributor of electrical products
has unveiled its new and upgraded medium-term financial ambitions, ahead of its
Capital Markets Day in Paris.

U.S. Economic Reports

Employment in the U.S. shot up by far more than economists had been expecting in
the month of May, according to a closely watched report released by the Labor
Department on Friday.

The Labor Department said non-farm payroll employment surged by 272,000 jobs in
May after climbing by a downwardly revised 165,000 jobs in April.

Economists had expected employment to increase by about 185,000 jobs compared to
the addition of 175,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate crept up to 4.0 percent in May
from 3.9 percent in April. The unemployment rate was expected to remain
unchanged.

At 10 am ET, the Commerce Department is scheduled to release its report on
wholesale inventories in the month of April. Wholesale inventories are expected
to rise by 0.2 percent.

Federal Reserve Board Governor Lisa Cook is due to delivery the commencement
address before the Girls Global Academy 2024 Commencement Ceremony at 12 pm ET.

At 3 pm ET, the Federal Reserve is scheduled to release its report on consumer
credit in the month of April. Consumer credit is expected to increase by $11.0
billion.



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