U.S. Stocks Advance After Employment Report Exceeds Estimates
U.S. Stocks Advance After Employment Report
Jin Lee/Bloomberg
A trader works on the floor of the New York Stock Exchange.
A trader works on the floor of the New York Stock Exchange. Photographer: Jin Lee/Bloomberg
Sept. 3 (Bloomberg) -- Barry Knapp, chief U.S. equity strategist at Barclays Capital Inc., talks about the U.S. stock market and the economy. Knapp speaks with Betty Liu and Jon Erlichman on Bloomberg Television's "In the Loop." (Source: Bloomberg)
U.S. stock futures swung between gains and losses as investors awaited the monthly payrolls report to help gauge the health of the world’s largest economy.
Take-Two Interactive Software Inc. jumped 15 percent after reporting an unexpected third-quarter profit. H&R Block Inc. gained 5.1 percent after the biggest U.S. tax preparer posted a narrower quarterly loss as the company seeks to win back customers from online rivals such as Intuit Inc.’s TurboTax.
Futures on the Standard & Poor’s 500 Index expiring this month fell less than 0.2 percent to 1,088 at 7:55 a.m. in New York before the report that may show U.S. employment cooled in August. Dow Jones Industrial Average futures lost 11 point, or 0.1 percent, to 10,298 while Nasdaq-100 Index futures were little changed at 1,836.50.
“This is the critical release that we get this month,” said London-based Keith Wade, chief economist at Schroders Plc, on Bloomberg Television’s “On The Move” with Francine Lacqua. “The labor market has been one of the weakest parts of the U.S. economy. We are in the more optimistic camp.”
Stocks climbed yesterday, extending the biggest rally for the benchmark S&P 500 in almost two months, after economic figures from retail sales to pending home sales helped boost confidence in the economic recovery. The gauge has climbed 2.4 percent so far this week, poised to snap a three-week losing streak, and remains 10 percent below this year’s peak in April.
Today’s Labor Department report may show private payrolls that exclude government agencies rose by 40,000 after a 71,000 July gain, according to the median economist estimate in a Bloomberg News survey. The jobless rate climbed to 9.6 percent, while total employment may have dropped for a third consecutive month as census workers were let go. The figures are due at 8:30 a.m. New York time.
Take-Two
Take-Two climbed 15 percent to $10.21 in pre-market trading after the video game publisher reported an unexpected third- quarter profit of 28 cents a share and boosted its earnings outlook on sales of the newest release, “Red Dead Redemption.” Analysts had estimated a full-year loss of 20 cents.
H&R Block climbed 5.1 percent to $13.21. The company reported a quarterly loss from continuing operations of $127.6 million, or 40 cents a share. That compares with $130.6 million, or 39 cents, in the same period last year. Chief Executive Officer Alan Bennett, who recently rejoined the company, is working to reverse customer losses after the company missed its fiscal 2010 forecast earlier this year.
U.S. Airways Group Inc. may also increase after the carrier said its August passenger revenue per available seat mile increased an estimated 15 percent.
Quicksilver Inc. may also move after the maker of clothing for skateboarders and surfers said third-quarter sales fell short of analyst estimates.
To contact the reporters on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net; Sarah Jones in London at sjones35@bloomberg.net.
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