MARKET SNAPSHOT: U.S. Stock Futures Trim Gains After Jobs Report

By Barbara Kollmeyer and Anora Mahmudova, MarketWatch Features Dow Jones Newswires

Oil prices slide to three-week lows on worries about U.S. output after Trump withdraws from Paris Agreement

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U.S. stock futures trimmed modest gains Friday, after official monthly jobs data showed the economy added 138,000 jobs last month, coming in below Wall Street economists' forecasts.

The details of the jobs report were also weaker than expected. The number of job gains for April (http://www.marketwatch.com/story/us-adds-138000-jobs-in-may-unemployment-drops-to-16-year-low-of-43-2017-06-02)and March were revised lower. The unemployment rate slipped to 4.3% but the decline was largely due to shrinking labor force. Average wages rose 0.2% to $26.22 an hour, in line with expectations.

Dow Jones Industrial Average futures were up 20 points, or less than 0.1%, to 21,153, while S&P 500 futures pared gains to trade flat at 2,428. Nasdaq-100 futures advanced 11.50 points, or 0.2%, to 5,833.

Opening with gains, however small, would send the main indexes further into record territory.

Still, the weekly move for the benchmarks would be modest. Both the Nasdaq and the S&P 500 were set to rise 0.6% with one session left to go, and the DJIA was poised to gain 0.3%.

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On Thursday, The S&P 500 index closed up 0.8% at 2,430.06, the Dow industrials surged 0.7% to end at 21,144.18, and the Nasdaq Composite Index climbed 48.31 points to finish at 6,245.83.

Read:The S&P 500 has never had a down year after a start like 2017 (http://www.marketwatch.com/story/the-sp-500-has-never-had-a-down-year-after-a-start-like-2017-2017-05-31)

The disappointing reading on the nonfarm payrolls is unlikely to stop the Federal Reserve's from raising interest rates, however. The Fed is widely expected to raise interest rates at its two-day policy meeting ending June 14, with the CME FedWatch tool (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html) pointing to a 91.2% chance of such an increase.

Other markets: Oil prices fell to three-week lows (http://www.marketwatch.com/story/oil-prices-stay-weak-as-investors-return-to-worries-over-rising-production-2017-06-02) on Friday, partly driven by concerns that President Donald Trump's decision to withdraw (http://www.marketwatch.com/story/trump-today-president-withdraws-us-from-paris-climate-agreement-and-says-he-wants-fair-deal-2017-06-01) the U.S. from the Paris Climate Accord will lead to an increase in U.S. oil output.

Wall Street's optimism spread across the globe Friday. The Nikkei 225 index closed above the key 20,000 level, adding 1.6% as the Japanese yen eased against the dollar . European stocks were headed for a two-week high (http://www.marketwatch.com/story/european-stocks-head-for-2-week-high-with-investors-hopeful-about-key-us-jobs-data-2017-06-02), and the FTSE 100 was on track for a record (http://www.marketwatch.com/story/ftse-100-on-track-for-all-time-high-as-us-records-lift-trading-mood-2017-06-02).

Gold prices continued to fall in the wake of Thursday's labor market data, which provided support for the dollar, but soured investor appetite for the precious metal. (http://www.marketwatch.com/story/this-is-the-most-recommended-us-stock-2017-06-02)

Individual stocks:Hovnanian Enterprises Inc. (HOV) is scheduled to report earnings ahead of the open on Friday.

Shares of Lululemon Athletica Inc.(LULU) shot up 15% in premarket action after the apparel-maker posted first-quarter results that beat expectations (http://www.marketwatch.com/story/lululemon-shares-rally-10-after-company-earnings-ivivva-restructuring-plans-2017-06-01) and announced a shake-up of its Ivivva brand, late Thursday.

Shares of RH Inc.(RH) sank 22% in premarket trading. The retail chain formerly known as Restoration Hardware cut its earnings outlook for the year (http://www.marketwatch.com/story/restoration-hardware-plunges-more-than-20-after-cutting-earnings-forecast-2017-06-01).

Opinion: This is the most recommended stock (http://www.marketwatch.com/story/this-is-the-most-recommended-us-stock-2017-06-02)

(END) Dow Jones Newswires

June 02, 2017 08:56 ET (12:56 GMT)