Nasdaq Futures Jump 1, Dow Negative after Weak Jobs Data

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May 7 Reuters Futures tracking the Nasdaq jumped more than 1 on Friday as megacap growth stocks rallied after a downbeat jobs report eased valuation concerns and worries about the U.S. Federal Reserve reducing its massive stimulus program anytime soon.

The Labor Departments closely watched employment report showed U.S. employers hired far fewer workers than expected in April, with nonfarm payrolls increasing by only 266,000 jobs last month after rising by 770,000 in March.

Economists polled by Reuters had forecast payrolls advancing by 978,000 jobs.

Highly valued stocks such as Microsoft Corp, Apple Inc, Amazon.com Inc and Facebook Inc rose more than 1 each in premarket trading.

One number doesnt make a trend, but it takes some of the heat off the economy overheating and inflation moving dramatically higher, said Larry Adam, chief investment officer at Raymond James. This puts less pressure on the Fed to prematurely talk about tapering.

The report also showed unemployment rate rose to 6.1 in April from 6.0 in March.

Economically sensitive cyclical stocks reversed earlier gains, with planemaker Boeing Co down 0.1, lender Goldman Sachs Group Inc falling1.4 and oil major Chevron Corp dropping 0.6.

At 906 a.m. ET, Dow eminis were down 32 points, or 0.09, SP 500 eminis were up 13 points, or 0.31, and Nasdaq 100 eminis were up 154 points, or 1.13.

The Nasdaq Composite index is set to fall 2.3 this week, its worst weekly decline since late February. The SP 500 and the…

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