Futures are inching higher ahead of the jobs report

Still, the upbeat U.S.jobs report failed to significantly alter the longer-term expectation that the Federal Reserve will keep US interest rates on hold for at least a year, according to Fed funds futures prices.

Futures for the Dow Jones Industrial Average YMU6, -0.02% climbed 12 points, or 0.1%, to 17,830, while those for the S&P 500 index ESU6, -0.04% gained 1.25 points, or 0.1%, to 2,092.50. The broader Standard & Poor’s 500 stock index was 0.6% higher and the Nasdaq composite was also trending higher. That’s a significant improvement from May in which just 11,000 jobs were created. The Nasdaq held onto a modest gain thanks to strength in technology stocks and share of Costco (COST). The West Texas Intermediate (WTI) benchmark for USA crude futures rose 18 cents or 0.4% to $45.32 a barrel on the New York Mercantile Exchange.

Unemployment in June rose to 4.9 percent, compared with the estimate of 4.8 percent.

The yield on the 10-year Treasury note fell to 1.37 percent from 1.39 percent.

The Energy Information Administration said that USA commercial crude stockpiles fell by 2.2 million barrels to 524.4 million.

European stocks also surged after the data’s release, with Germany’s DAX stock index rising 2.24 percent to lead the region’s bourses. Growth in average hourly earnings is expected to remain unchanged at 0.2%, while hours worked is forecast to remain unchanged at 34.4.

Today, stock futures across the pond are seen, with the Dow down 14 points; the S&P500 down 2.25 and the Nasdaq futures losing 3.25.

They have favored those companies all year, especially in the wake of Britain’s vote to leave the European Union last month.

The S&P 500 has spent 286 days trading without making a fresh record, the longest stretch outside a bear market since a 361-day drought in 1960 and ’61.

“This is probably the most important jobs report we’ve had in years”, said Mike Bell, global market strategist at J.P. Morgan Asset Management.

Although the report was encouraging, it likely isn’t enough to sway the Federal Reserve into raising interest rates later this month.

Advancing issues outnumbered decliners on the NYSE by 1,887 to 711.

Futures pointed to a 0.6% opening gain for the S&P 500, compared with a 0.2% rise ahead of the jobs report.

Crude prices bounced back from two-month lows hit in the previous session, but benchmark Brent was set for its largest weekly decline since January as bearish economic indicators weighed on oil.