U.S. Stock Futures Rise Amid Release of Surprising July Jobs Report
The U.S. stock index futures have made a jump on Friday due to a better than expected U.S. jobs report.
The U.S. Bureau of Labor Statistics report showed "good" signs with unemployment dropping to 9.1 percent and the United States adding 117,000 jobs in July.
The news is being called "good" simply because it is not "horrible" and because it does present an upturn to June's depressed numbers.
Prior to its release, experts were concerned that the job report might only make things worse.
Strategist Michael Hewson told the Wall Street Journal, "I think we're going to see further weakness … It's going to take a really, really good payrolls figure to turn the market around and I don't think we're going to see that."
However, thus far, investors have been positively influenced by the jobs report as U.S. stock futures made a sharp incline Friday morning following the release of the better-than-anticipated report.
The Dow Jones Industrial Average, which took a deep downward plunge yesterday of 4.31 percent that managed to erase all of its gains for the current year, soared up 106 points in the moments following opening on Friday morning.
Other stocks such as Standard & Poor's and Nasdaq also saw gains Friday morning.
However, changes in stock futures are not always indicative of what will happen on the market following the opening bell.
The entire global market took a beating yesterday amid fears of a U.S. double dip recession and the spread of a eurozone debt cries.
Even though the jobs report may help ease some investor fears, the U.S. will still have to face a sharply slowed down economy, downbeat consumer spending, and a slow manufacturing sector.
Thus, analysts are saying that the news is not necessarily reassuring and fear and uncertainty are likely to remain palpable factors in the functioning of global markets.
