9:45AM U.S. stocks opened higher, helped by economic optimism and gains in the tech sector.

Wall Street opened higher, lifted by stronger-than-expected job growth in May and gains in the tech sector. Market gladly received news that nonfarm payrolls rose by 157,000, exceeding last-month growth and analyst expectations. The unemployment rate wad steady at 4.5%, as expected. Further boost to the market sentiment was given by a report which showed that inflation fell back into the Fed Reserve's comfort zone and data showing stregthening manufacturing sector.

Technology stocks showed significant strength after Dell (DELL: chart) posted Q1 profit results that topped expectations. The company also said it would cut 10% of its work force within the next two years in order to reduce costs. Dell rose 3%. Dow Jones & Co. (DJ: chart) climbed 15% after the Bancroft family said they will meet with Rupert Murdoch's News Corp. (NWS: chart), which had offered $5 billion for the company. In other deal news, 3M (MMM: chart) said it acquired the manufacturing and marketing rights to the Peridex brand periodontal rinse product from Zila Inc. for $9.5 million in cash.

Commodities also moved higher in early trading. Crude oil futures gained 43 cents to $64.44 a barrel and the front-month gold contract rose $6.60 to $667.60 an ounce. In the first hour of trading, the Dow Jones industrial average rose 43.64, or 0.32%, to 13,671.28. The Standard & Poor's 500 index rose 7.19, or 0.47%, to 1,537.81, and the Nasdaq composite index rose 17.14, or 0.66%, to 2,621.66. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.93% from 4.89% late Thursday.


Nonfarm payrolls advanced 157,000 in May.
The U.S. economy added more jobs in the month of May than economists had been expecting, according to a report released by the Department of Labor on Friday, although the job growth was exclusively in the service sector. The report showed that employers added 157,000 jobs in May following a downwardly revised increase of 80,000 jobs in April. Economists had been expecting an increase of 135,000 jobs compared to the increase of 88,000 jobs originally reported for the previous month. The better than expected job growth was entirely due to increased employment in the service sector, which rose by 176,000 jobs in May after adding 119,000 jobs in April. Strong growth in health care and food service jobs contributed to the strength in the sector.

At the same time, the manufacturing sector continued to lose jobs, as manufacturers cut 19,000 jobs in May after losing 20,000 jobs in the previous month. Employment in the construction sector was flat after showing a notable decline in April. The report also showed that the unemployment rate remained unchanged at 4.5 percent, as economists had expected. Additionally, the Labor Department said that average hourly earnings rose by $0.06 or 0.3 percent to $17.30. With the increase, average hourly earnings are up 3.8 percent compared to the same month last year.


9:30AM The UK benchmark index FTSE 100 is higher on miners, retailers.

The FTSE 100 in London was 10 points, 0.15%, higher at 6,631 in early afternoon trade.

Advancers

Home Retail Group was 2.8% higher as there are rumors of a possible buyout by private company CVC. Hammerson is also in positive terriroty, 2.2% higher on bid interest from British Land. Pub operator Punch Taverns advanced after Goldman Sachs hikes its rating on the stock to buy from neutral.

Miners were stronger on favorable prices. BHP Billiton gained 0.65%, while Vedanta Resources advanced 1.7 per centas copper prices struck their highest level in more than a week in London.

Biofuels Corporation surged 48.7% as Barclays of the U.K has agreed to give Biofuel ana dditional overdraft worth 7 million pounds to meet interim demands.

Decliners

Centrica, the gas utility, dipped 1.6% after damage to pipeline led to a leak which temporarily closed its gas terminal at Easington. Pennon, the water company, dipped after HSBC reduced its rating on the stock to underweight from neutral.


9:00AM U.S. stock futures pointed advanced, boosted by strong jobs data.

U.S. stock futures advanced on Friday, boosted by upbeat employment data. Better-than-expected margins and unexpected job cut plan announced by Dell also provided help. The Labor Department said that nonfarm payrolls expanded by 157,000 in May slightly above the 150,000 expected by economists. The unemployment rate was steady at 4.5%, in line with expectations. Average hourly earnings rose 0.3% to $17.30.

Among companies in focus, Dell (DELL: chart) rose 4% in pre-market trading after posting a slight profit decline and a better-than-expected operating margin. The computer giant also said it would cut about 10% of its workforce. Merrill Lynch downgraded the stock to neutral from buy. Dow Jones & Co. (DJ: chart) climbed 14% in pre-open trade after the Bancroft family said they will meet with Rupert Murdoch''s News Corp. (NWS: chart), which had offered $5 billion, or $60 a share for Dow Jones & Co.

On the earnings news front, Hovnanian Enterprises (HOV: chart) said it swung to a Q2 loss of $30.7 million, or 49 cents a share, compared with earnings of $101 million, or $1.55 a share a year ago. The home builder said revenue for the period fell to $1.11 billion from $1.57 billion. Analysts had expected a per-share loss of 48 cents on revenue of $1.16 billion. In addition, the company said it had withdrawn its prior estimates for 2007 earnings.