Stocks set for flat open on mixed jobs report

NEW YORK (CNNMoney) -- U.S. stocks were headed for flat open Friday, after the government's highly-anticipated jobs report showed far fewer jobs than expected were added in January.

Investors took some comfort in the unemployment rate, which fell sharply.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were modestly higher ahead of the opening bell. Futures measure current index values against perceived future performance.

Futures were pointing to a more solid open before the report came out but quickly lost steam following the disappointing job figures. Still, investors largely remain confident in the overall recovery, said David Jones, chief market strategist at IG Markets.

"Earnings have been pretty good, the U.S. GDP was overshadowed by Egypt but that was good too, and overall the economic recovery in the U.S. still seems to be fairly stable and steady, so I expect to see more strength," said Jones.

Stocks ended higher Thursday, as investors digested comments about the economy from Federal Reserve chairman Ben Bernanke -- who said a weak job market continues to weigh on the recovery.

Economy: The economy added 36,000 jobs in January, according to the Labor Department's monthly report.

The reading was much lower than forecast, with economists surveyed by CNNMoney expecting employers to have added 149,000 jobs in January.

But the government also reported that the employment rate dropped to 9% from 9.4% in December, while economists had predicted the rate would tick back up to 9.5%.

Companies: Shares of JPMorgan Chase (JPM, Fortune 500) slipped nearly 1% after allegations late Thursday that the investment bank was warned about Bernard Madoff's Ponzi scheme years prior to its collapse, but did nothing to stop it.

Early Friday, Aetna (AET, Fortune 500) also reported stronger-than-expected fourth-quarter earnings and boosted its dividend, sending shares of the company 10% higher.

Shares of JDS Uniphase Corp. (JDSU) surged 23% in pre-market trading, after the communications equipment maker logged quarterly earnings late Thursday that widely beat expectations.

After the market close Thursday, Las Vegas Sands (LVS, Fortune 500) posted disappointing earnings, sending shares of the casino company 5% lower in pre-market trading Friday. Other casino stocks, including Wynn Resorts (WYNN) and MGM Resorts International (MGM, Fortune 500), shared the pain. Shares of Wynn fell 2%, while MGM shares slumped 1.4%.

World markets: European stocks gained in midday trading. Britain's FTSE 100 climbed 0.4%, the DAX in Germany ticked up 0.3% and France's CAC 40 rose 0.4%.

Japan's Nikkei rallied 1.1%. Other Asian markets, including Shanghai and Hong Kong, remained closed for the lunar new year holiday.

Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen.

Oil for March delivery gained 70 cents to $91.24 a barrel.

Gold futures for April delivery fell $3 to $1,350 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.57 from 3.54% late Thursday.