* U.S. equity index futures mixed; Nasdaq up, Dow slips
* U.S. April NFP 266k vs 978k estimate
* Euro STOXX 600 up ~0.3%
* Dollar down; gold up, crude falls
* U.S. 10-Year Treasury yield ~1.55%
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U.S. STOCK FUTURES MIXED AFTER PAYROLLS MISS (0900 EDT/1300
GMT)
U.S. equity index futures are mixed in the wake of a worse
than expected April NFP headline number.
April NFP printed at 266k vs a 978k estimate. Average hourly
earnings were hotter than expected:
With this, the U.S. 10-Year Treasury yield fell
to as low as 1.4690%, before bouncing back to around 1.54%.
With the lower yields, Dow futures and crude
weakened, while gold and Nasdaq futures
rallied.
If this premarket action holds through the day, there may be
potential for the S&P 500 growth/ S&P 500 value
ratio to end its 8-day losing streak.
As for the payrolls report, Peter Cardillo, chief market
economist at Spartan Capital Securities in New York, said “It’s
a disappointing report. The participation rate is stuck in the
mud. The unemployment rate at 6.1% is another disappointment."
Cardillo added that, "It’s being accompanied by higher
wages, which could be a problem."
As for market reaction, Cardillo said, "We’re seeing gold
going through the roof right now. Yields going down and higher
yields have had a negative effect on the Nasdaq. With the
10-year (Treasury yield) going to 1.51%, that’s a hefty drop.
The dollar sinking and people are rethinking the Nasdaq.”
Here is where markets stand ahead of the U.S. open:
(Terence Gabriel, Stephen Culp)
*****
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)