Wall St opens higher after strong private jobs data

Traders now see a roughly 87 percent chance of a Fed rate increase on June 14, down slightly from 89 percent before the jobs report.

Data showed that US nonfarm payrolls increased just 138,000 last month as the manufacturing, government and retail sectors lost jobs, while the consensus forecast was for 185,000 new jobs.

The nonfarm payrolls report on Friday is expected to show that the US economy created 185,000 jobs last month, and will be closely watched as it is the final jobs report before the Federal Reserve Open Market Committee (FOMC) meets in June. U.S. private employers added 253,000 jobs in May, above economists' expectations, a report by a payrolls processor showed on Thursday.

The dollar index, a measure of the greenback's strength against a basket of six global currencies, gave back earlier gains to trade 0.45% lower at 96.77 after the Bureau of Labor Statistics said 138,000 new jobs were created in May, well below the market consensus of 185,000. Consistent with the ADP ADP report was significant growth in new Construction jobs. The labor market is near full employment, with the jobless rate at a 10-year low of 4.4 percent. The unemployment rate continues to fall, and came in at 4.3%, beating the estimate of 4.4%.

The other "outside market" on Friday morning finds the US dollar index near steady.

Brent crude tumbled below $50 and headed for a second week of losses on worries Trump's decision to abandon a climate pact could spur USA crude drilling and worsen a global glut.

Dow e-minis were up 11 points, or 0.05 percent, with 19,927 contracts changing hands.

MSCI's all-country world stock index hit a new record, gaining 0.5 percent, as did British shares as financial stocks lifted the FTSE 100 index of top United Kingdom blue chips before paring gains. The stronger ADP number on Thursday now has many thinking Friday's more important USA non-farm jobs number could be a miss to the upside, too. The S&P 500 gained 9.01 points, or 0.37 percent, to 2,439.07 and the Nasdaq Composite added 58.97 points, or 0.94 percent, to 6,305.80.

Those figures could indicate a strong government payrolls report, which is due out tonight in the USA, and that would firm up the chances of an interest rate rise by the Federal Reserve in two weeks.

Spot gold was up 1 percent at $1,277.76 per ounce by 3:34 p.m. EDT (1934 GMT), after hitting its highest since April 21 at $1279.10 and was headed for its fourth week of gains.

"U.S. data expectations right now are pretty lofty". The index hit a 2-1/2-year high of 57.7 in February amid optimism over President Donald Trump's pro-business policy proposals. The three-year was up 1/32 in price, and its yield fell to 1.427 percent from 1.446 percent.

The market has priced in a global growth rebound, though skepticism on the part of bond investors, a tepid market for small-capitalized stocks and a downward drift in oil prices point to sluggish growth, low inflation and low rates, he said.

  • Zachary Reyes