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NEW YORK_Stock futures are falling after the government says more jobs were lost in October than expected, pushing the unemployment rate above 10 percent.
The Labor Department says employers cut 190,000 jobs last month, more than the 175,000 job losses economists expected. The unemployment rate jumped to 10.2 percent _ the highest since April 1983. Though investors have been expecting unemployment to rise above 10 percent eventually, the increase in October was more than expected.
Dow Jones industrial average futures are down 39 at 9,915, after being up about 15 points prior to the report. Standard & Poor's 500 index futures are down 3 at 1,059, while Nasdaq 100 index futures are down 4 at 1,714.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) _ Stock futures are holding steady as investors await the government's report on October employment.
The report from the Labor Department is considered a key gauge of the health of consumer spending, a major component of economic activity. So long as consumers are worried about losing their jobs, they will continue to clamp down on spending.
Economists forecast a decline of around 175,000 jobs during October. The unemployment rate is expected to rise to 9.9 percent. If the report is better than expected, stocks could add to the big gains logged Thursday, when the Dow Jones industrial average soared 203 points on a string of good economic news. A disappointing report, however, could shatter the market's confidence.
In earnings news, insurance giant American International Group Inc. said it was profitable for the second straight quarter as its core insurance operations continued to stabilize. AIG, which has received federal aid packages worth more than $182 billion, has been working to sell assets and streamline operations to repay that debt. Its CEO also warned of earnings volatility ahead as its restructuirng proceeds, however. Its shares tumbled more than 7 percent in premarket trading.
Ahead of the market's open, Dow Jones industrial average futures rose 5, or 0.1 percent, to 9,959. Standard & Poor's 500 index futures rose 0.50, or 0.1 percent, to 1,063.70, while Nasdaq 100 index futures rose 2.25, or 0.1 percent, to 1,721.50.
A better-than-expected report on jobs on Thursday stoked hopes for a good reading on employment and helped boost stocks. The government said the number of newly laid-off workers seeking unemployment benefits fell to the lowest level since January. Initial claims are considered a good indicator of the pace of layoffs.
An encouraging outlook from Cisco Systems Inc. and higher sales at major retailers also contributed to the surge on Wall Street Thursday that sent the Dow back above 10,000 for the first time in two weeks. The jolt in stocks continued the recent trend of volatility in the market as investors question whether the pace of economic growth will last. The government said last week that the economy expanded 3.5 percent in the third quarter, but much of that growth was driven by stimulus measures.
Investors will also get reports on wholesale inventories and consumer credit on Friday.
Bond prices were also little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.52 percent from 3.53 percent late Thursday.
The dollar slid against other major currencies, boosting commodity prices. Gold added about $4 to $1,093 an ounce. Oil rose 14 cents to $79.76 a barrel in electronic premarket trading on the New York Mercantile Exchange.
Overseas, Japan's Nikkei stock average rose 0.7 percent, while Hong Kong's Hang Seng index jumped 1.6 percent. In late morning trading, Britain's FTSE 100 gained 0.2 percent, Germany's DAX index inched up 0.02 percent, and France's CAC-40 gave up 0.1 percent.
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