Wall Street points higher ahead of jobs report

[May 08, 2009]  NEW YORK (AP) -- Wall Street pointed to a higher open Friday as investors were hopeful that a report on job losses in April would further validate the notion that the economy is healing.

The Labor Department's monthly employment report is a key gauge on the state of the economy. A drop in unemployment means more consumers can better pay their bills and spend money.

Analysts are expecting the report to show that a net total of 620,000 jobs were lost in April. That figure -- while still troublesome -- would be an improvement from March's 663,000 job losses and mark the fewest reductions since November.

The market has been on an upward swing since early March, rising more than 25 percent from 12-year lows on good news about business at banks and an increasing amount of improving economic data on housing, manufacturing and other key sectors of the economy. Though many challenges still remain, a positive report on the jobs market could be the catalyst to take the market higher, analysts say.

Investors also are cheering the results of the government's "stress tests" of the 19 largest U.S. banks, released after the market's close on Thursday.

Though much about the results had been leaked preceding the formal release, investors still seemed pleased. Stock futures turned higher immediately after the government released its report and said 10 of the banks would need a total of about $75 billion in new capital to withstand losses if the economy worsens. Some investors feared the test results would show the big banks needed much more capital.

Dow Jones industrial average futures are up 85, or 1.0 percent, to 8,472. Standard & Poor's 500 index futures are up 10.60, or 1.2 percent, to 917.60, while Nasdaq 100 index futures are up 8.50, or 0.6 percent, to 1,403.

On Thursday, the Dow ended down 102 points, erasing the previous day's gains. With Thursday's loss, the index is down 4.2 percent for the year. Broader indexes also declined.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 3.33 percent from 3.27 percent late Thursday.

The dollar fell against other major currencies, while gold prices rose.

Light, sweet crude rose $1.23 to $57.94 in electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average rose 0.5 percent. In late morning trading, Britain's FTSE 100 gained 1.4 percent, Germany's DAX index was up 2.4 percent, and France's CAC-40 added 1.9 percent.

[Associated Press; By SARA LEPRO]

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