U.S. equity futures decrease as Treasuries, Gold Rally Report weaker employment

U.S. -stock futures fell, erasing an earlier gain, and Treasury bonds rose after losing employment growth estimates of economists in November and the unemployment rate rose unexpectedly, dampening optimism about economic recovery. Gold rose and left the oil.

Futures on the Standard & Poor's 500 Index expiring this month lost 0.5 percent to 1,217.1 at 8:36 am in New York after rising to 0.4 percent before the jobs report. Dow Jones Industrial Average futures fell 46 points, or 0.4 percent, to 11,317. The yield on the benchmark 10-year Treasury lost seven basis points to 2.92 percent. Gold for immediate delivery rose 0.8 percent and oil fell 0.4 percent from a maximum of two years.

The Labor Department said U.S. payrolls increased by 39,000 last month, behind the median estimate of economists surveyed by us ,for an increase of 150,000 jobs. The unemployment rate rose to 9.8 percent from 9.6 percent.

The S & P 500 is up 19 percent from its low in July 2010 as corporate profits and improving the Federal Reserve expanded its asset purchase program to suppress interest rates and fuel the economic recovery.

Stocks rose for a second day yesterday, giving the Dow Jones industrial average its biggest rally back to back since July, as sales in U.S. of origin and retail purchases and beat estimates by Goldman Sachs Group Inc. recommended buying the banks about the prospects for an improvement in the economy. The Dow and the S & P 500 have risen more than 3 percent each so far in December.

The Dow Jones industrial average has risen in December than in any other month in the last century, according to data compiled by Bespoke Investment Group. On average, the indicator of 30 stocks has risen 1.3 percent in the month in the last 100 years, while gaining 1.5 percent and 1.7 percent in the last 50 and 20 years respectively according to the data.

Stocks fell for the first two days of this week amid concerns that the crisis of European sovereign debt spreads. The European Central Bank President Jean-Claude Trichet said yesterday the bank to delay the withdrawal of stimulus and buy more government bonds.