* U.S. job growth lost momentum last month
* Fed likely to continue stimulus after Sept. payrolls
* Netflix shares extend gains on strong earnings, more
* Futures up: Dow 48 pts, S&P 5 pts, Nasdaq 10 pts
By Rodrigo Campos
NEW YORK, Oct 22 U.S. stocks were set to open
higher on Tuesday after weaker-than-expected job creation last
month raised expectations that the Federal Reserve will continue
to stimulate the economy at the current pace into 2014.
U.S. employers added far fewer workers than expected,
suggesting a loss of momentum in the economy that supported the
Fed's decision to maintain its $85 billion a month in bond
purchases. The stimulus has helped the S&P 500 rally to record
"Full bore quantitative easing will probably be with us
through the first quarter and speculation for an increase may be
no further than another weak payroll," said Joseph Trevisani,
chief market strategist at WorldWideMarkets in Woodcliff Lake,
"Today's underperforming jobs number fully justifies
September's cautious (Fed)," he said.
The Fed threw markets into a loop in mid-September by
keeping its stimulus intact when most in the market expected the
start of a withdrawal. The Fed wanted more evidence of solid
Employers added 148,000 last month, the Labor Department
said, compared with expectations of 180,000. While the job count
for August was revised higher and the unemployment rate ticked
down to 7.2 percent from 7.3 percent, employment gains in July
were the weakest since June 2012.
Netflix shares rose 9 percent in premarket trading
a day after it said it had added 1.3 million U.S. streaming
customers in September. Netflix's third quarter net income
reached $32 million, up from $8 million a year earlier.
S&P 500 futures rose 5 point and were slightly above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures rose 48
points and Nasdaq 100 futures added 10 points.
U.S. stocks ended little changed on Monday as lackluster
earnings reports from McDonald's and others fed concerns that
equities were overpriced, but the S&P 500 ticked up to close at
a record high.
Transocean shares rose 4.1 percent in premarket
trading after S&P Dow Jones Indices announced the drilling
services company will replace Dell on the S&P 500 index
after the close of trading next Monday.
Shares of cloud software maker VMware Inc rose 9.5
percent before the open a day after it reported a
higher-than-expected quarterly profit.
S&P 500 companies scheduled to report earnings include Amgen
, Juniper Networks and Broadcom. Dow
components Travelers and DuPont reported results