U.S. stock futures soar on fewer job losses

NEW YORK (AP) — U.S. stock futures pushed higher Friday as investors cheered a government report that said employers cut fewer jobs than expected last month.

The Labor Department said 345,000 jobs were lost in May, significantly less than the half-million job losses economists had been expecting and the fewest job losses since September.

However, the unemployment rate surged to a slightly higher-than-expected 9.4 percent from 8.9 percent in April, proving that companies are still reluctant to hire back laid off workers.

But investors looked beyond the higher unemployment rate and instead took the slower pace of layoffs for a fourth month in a row as a sign that labor market may be stabilizing.

The impact of the jobs report was evident in other markets, too. Safe-haven assets like gold and government bonds sold off sharply, while oil prices surged briefly above $70 a barrel - a new high for the year. Meanwhile, the dollar, another traditionally safe bet, reversed early gains and declined against other major currencies.

Unemployment has been one of the most closely watched gauges of the economy's health throughout the recession. Rising job losses affect vast areas of the economy, including consumer spending, retail sales and the housing market.

Ahead of the market's open, Dow Jones industrial average futures rose 97, or 1.1 percent, to 8,827, after being up about 33 points prior to the report. Standard & Poor's 500 index futures jumped 11.60, or 1.2 percent, to 952.10, while Nasdaq 100 index futures gained 10, or 0.7 percent, to 1,503.

Besides jobs, investors also will be keenly focused on the financial sector Friday after The Wall Street Journal reported that the Federal Deposit Insurance Corp. is pressing for a management shake-up at Citigroup Inc.

The embattled New York-based bank has already received $45 billion in government rescue funds. Last month, the government determined that it would need to raise an additional $5.5 billion as a buffer against future losses.

Citigroup shares added 9 cents to $3.66 in premarket trading.