Job market report disappoints Wall Street
Higher-than-expected payroll losses for October could set markets lower after rally that pushed Dow back above 10,000.
NEW YORK (CNNMoney.com) -- U.S. stocks were set to fall Friday after the government reported higher-than-expected payroll losses for October and an increase in unemployment.
S&P 500, Nasdaq-100 and Dow Jones industrial average futures were lower, losing their lukewarm gains immediately after the payroll report.
Futures measure current index values against their perceived future performance and offer an indication of how markets may open when trading begins.
The blue-chip Dow reclaimed the 10,000 mark Thursday after a batch of positive economic news sparked a rally on Wall Street.
Prior to the pre-market release on October payrolls, Philip Isherwood, equities strategist at Evolution Securities in London, said it would be used to gauge consumer spending for the upcoming holiday shopping season.
"If you lose your job, you lose your ability and willingness to spend," he said. "The more confident people are in the employment background, the more willing they are to spend. It sets the tone, if you like."
Jobs: The U.S. Labor Department reported that payrolls fell by 190,000 jobs in October and the unemployment rate rose to 10.2%.
Economists had expected the economy to have lost another 175,000 jobs last month and for the unemployment rate to rise to 9.9%, according to a consensus of economists surveyed by Briefing.com.
Earnings: Futures showed little reaction to an earnings report on Friday from American International Group (AIG, Fortune 500), which beat expectations.
AIG reported a third-quarter net profit of $455 million, or 68 cents per share. The company reported revenue of $26 billion. The stock slipped in pre-market trading.
Starbucks (SBUX, Fortune 500) posted late Thursday quarterly results that topped expectations. The coffee retailer also boosted its outlook.
Fannie Mae (FNM, Fortune 500) reported a nearly $19 billion loss on bad loans and said it would have to seek more government funds.
World markets: Global shares rose on the back of Wall Street's rally. Asian shares finished the session with gains and major European indexes were higher in midday trading.
Money and oil: The dollar was mixed against major international currencies, edging up against the euro and the pound but slipping versus the yen.
The price of oil dropped $1.03 to $78.59 a barrel in electronic trading. 
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