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U.S. Stock-Index Futures Drop as Oil Climbs Above $130 a Barrel

By Adam Haigh

June 6 (Bloomberg) -- U.S. stock-index futures declined as crude oil rose above $130 a barrel in New York. UAL Corp., owner of United Airlines, dropped in Europe.

A report today may show the nation lost jobs for a fifth month in May and the unemployment rate rose, adding to evidence economic growth is stalling.

Futures on the Standard & Poor's 500 Index expiring in June fell 1.4, or 0.1 percent, to 1,403.9 at 10:46 a.m. in London after climbing as much as 0.4 percent. Dow Jones Industrial Average futures retreated 6 to 12,612. Nasdaq-100 Index futures decreased 2.25 to 2,054.

UAL slipped 15 cents to $9.96 in Germany. Crude oil gained for a second day in New York as the dollar headed for a weekly loss against the euro, making commodities attractive as hedge. The contract for July delivery traded at $130.23 a barrel.

The Labor Department will probably say non-farm payrolls dropped by 60,000 workers in May and the jobless rate rose to 5.1 percent, economists said before data scheduled for release at 8:30 a.m. Washington time.

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To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.

Last Updated: June 6, 2008 05:49 EDT

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