Lower open set as jobless rate nears five-year peak

Small-cap stocks are expected to open lower, pulled down by dreary jobs data, as the unemployment rate spiked to nearly a five-year high as more jobs than expected were shed across the country. The Russell 2000 (NYSE:IWM) was down about 0.8% in after-hours trading, which would suggest a regular open near 712.75.

The jobs report headline figure for non-farm payrolls declined 84,000, which was worse than the consensus forecast for a slide of 71,000. In addition, the unemployment rate was pegged at 6.1%, which was well ahead of the 5.7% projection. This marked the highest jobless rate since December 2003.

Stock index futures immediately tumbled some ten additional handles when the numbers came out, as the initial shock of the unemployment rate sparked a wave of selling. Also, the U.S. dollar slipped after the report. Ahead of the jobs release, the greenback was on a roll, storming to fresh move highs against the euro, the highest point since October 2007. However, the dollar continues to waffle versus the yen, and was actually down about 0.6% before the report, and extended those losses to 1.3% immediately after the data.

Large caps in the spotlight overnight include investment bank/brokerage firm Merrill Lynch & Co. (NYSE:MER) as rival investment bank Goldman Sachs was . . .

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