unemployment numbers, stock futures, july jobs report, economic calendar, unemployment report
By Donna Kardos Yesalavich
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stock futures jumped Friday morning after the Labor Department announced the unemployment rate surprisingly fell last month as U.S. job losses tapered off.
Prior to the report, Dow Jones Industrial Average futures were down 4 points, Nasdaq Composite futures were up 2 points and S&P 500 futures were down 0.1 point. Following the report, Dow futures soared 62 points to 9291, while Nasdaq futures rose 16 points to 1617 and the S&P 500 futures climbed 8 points to 1003.
Thursday, U.S. stocks fell on worries about the July jobs report. Following a big rally over the past month, investors were taking profits with fears the jobs report Friday could be worse than expected and sent stocks lower. However, the report Friday delivered a positive surprise.
In the report, the Labor Department said nonfarm payrolls declined 247,000 in July, the smallest drop since last August and below the 275,000 decline economists in a Dow Jones Newswires survey had expected.
Meanwhile, the unemployment rate, calculated using a survey of households as opposed to companies, slid 0.1 percentage point to 9.4%. The unemployment rate was under 6% less than one year ago. When marginally attached and involuntary part-time workers are included, the rate of unemployed or underemployed workers was 16.3% last month, down slightly from June.
The data suggest a turning point is at hand after job cuts earlier in the year that totaled as much as 700,000. The economy has lost 6.7 million jobs since the recession started in December 2007.
-By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com
Among the companies whose shares are expected to actively trade in Friday's session are American International Group Inc. (AIG), Royal Bank of Scotland Group PLC (RBS) and Hansen Natural Corp. (HANS).
AIG staunched the flow of investment losses to turn its first profit in six quarters, but its core insurance operations are still struggling to rebuild. Shares rose 18% to $26.70 premarket.
Royal Bank of Scotland, the 70% state-owned U.K. bank, Friday dampened hopes that banks have turned a corner in the financial crisis, saying its earnings may not recover much until 2011 and that loan losses will remain high. Shares fell 14% to $15.74 premarket.
Hansen Natural's second-quarter profit grew 14% as the all-natural soda and juice maker reported higher sales led by its Monster Energy drink and improved margins. Shares rose 12% to $34.26 premarket.
LifePoint Hospitals Inc. (LPNT) second-quarter earnings unexpectedly fell as admissions continued to drop. Meanwhile, the board of the rural-hospital operator authorized a $100 million stock-buyback effort over the next 18 months. Shares fell 7.6% to $25.90 premarket.
Fannie Mae (FNM) posted a sharply wider second-quarter loss on $18.8 billion of credit-related impacts as delinquencies continued to surge and the company admitted it is reliant on the government's help to stay in business. The mortgage financier requested another $10.7 billion of aid as part of the $200 billion package extended to Fannie. It has received $34.2 billion so far. Shares fell 13% to 69 cents premarket.
Chiquita Brands International Inc.'s (CQB) second-quarter earnings climbed 46% as the food company's cost-cutting efforts offset a small drop in revenue. Shares rose 17% to $15 premarket as results easily topped Wall Street estimates. The fruits-and-vegetables distributor expects to report "significantly improved" results for 2009 compared with 2008.
Leap Wireless International Inc. (LEAP) second-quarter loss widened on a credit line repayment and expenses associated with the issuance of notes, which mitigated higher revenue and improved operating profit. Leap shares slumped 21% to $17.80 premarket.
PMI Group Inc.'s (PMI) second-quarter loss narrowed on lower claims and loss-adjustment expenses despite continued woes at its U.S. mortgage-insurance business. However, shares fell 26% to $2.59 premarket as the results widely missed analysts' views.
Shoe maker Crocs Inc. (CROX) shares soared 33% to $5.68 premarket after the company reported a narrower second-quarter loss, excluding items, than the Street was expecting. It also reported higher revenue than analysts projected and forecast better-than-anticipated results for the third quarter.
Media giant CBS Corp. (CBS) reported earnings roughly in line with low Street expectations. In a show of confidence for a second-half turnaround, CBS backed its full-year earnings guidance, which many analysts thought would be lowered. Shares rose 9.1% to $9.32 premarket.
Beazer Homes USA Inc.'s (BZH) fiscal third-quarter loss narrowed sharply as the home builder reported reduced write-downs and a debt-extinguishment gain. Beazer is seeing increased demand, with its backlog jumping nearly 50% during the quarter. Shares climbed 5.5% to $3.49 premarket.
Nvidia Corp. (NVDA) shares gained 6% to $13.90 premarket as the graphics-chip maker's results topped fiscal second-quarter estimates and the company narrowed its loss from the year-earlier period. Both revenue and earnings excluding items topped Wall Street views, another sign that while chip sales remain depressed, the market may be recovering.
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CSC's (CSC) fiscal first-quarter profit climbed 5.6% as the information-technology company posted higher margins despite lower revenue and recorded a tax benefit. The company raised its per-share earnings target on the reduction of its tax rate and affirmed its revenue outlook.
VeriSign Inc. (VRSN) reversed a year-earlier loss in the second quarter caused by big restructuring charges, while operating results were much stronger as the Internet-registry company repositions itself. Earnings fell just short of analysts' expectations.
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