U.S. stock futures were sharply higher Friday, continuing big gains on the week, after the latest monthly U.S. jobs report came in much better than expected.
Dow Jones Industrial Average futures added 600 points, or 2.3%. S&P 500 futures gained 1.5%. Futures for the Nasdaq-100, which hit a record on Thursday, added 0.3%.
Those gains came after the Labor Department reported the U.S. unemployment rate came in at 13.3% for the month of May. That was much better than the 19.5% estimate.
Shares of airlines jumped in premarket trading, adding to their big gains this week, as the industry added more summer flights. Casino stocks gained as Las Vegas began to open this week.
The Dow is up 3.5% this week. The S&P 500 is up 2.2% and the Nasdaq Composite is up 1.3% through Thursday's close.
"The economy and the stock market have generally moved in the same direction over time, though rarely in lock-step," said Willie Delwiche, investment strategist at Baird, in a note. "The gulf between current headlines for Wall Street (best 50-day rally ever for the S&P 500) and Main Street (one-in-four American workers have now filed for jobless benefits) seems more extraordinary than normal."
American Airlines jumped 19% in premarket trading Friday. United Airlines shares surged 14.1%. The US Global Jets ETF is up 27% this week. Cruise-line operators such as Norwegian Cruise Line and Carnival both advanced more than 9% while Royal Caribbean gained 5.3%.
MGM Resorts jumped 4.4% in the premarket while Kohl's and Nordstrom advanced more than 6% each. Mall operator Simon Property gained 6.7%. Stay-at-home winners such as Netflix and Amazon dipped.
"While not looking past the current pain, the hope is that from these moments of uncertainty, a path toward a more hopeful future (and more robust economic participation) will emerge," said Delwiche.
On Thursday, the S&P 500 and Nasdaq Composite each snapped a four-day winning streak, while the Dow eked out a minuscule gain. The Nasdaq-100 index briefly touched a record high before rolling over to close more than 0.7% lower.
Wall Street's first decline for the month of June came after a report showing an unexpected rise in continuing jobless claims last week. Initial claims for state unemployment benefits also rose more than expected.
Earlier this week, data compiled by ADP and Moody's Analytics showed private payrolls dropped by 2.76 million last month. That was much less than the 8.75 million drop that was forecast.
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June 05, 2020 at 07:36PM
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Dow futures jump 500 points after jobs report is much better than feared - CNBC
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