U.S. stock exchange traded funds were set for a higher open Friday to build on their three-day rally after the September employment figures were stronger than expected.
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 0.7% in premarket dealings as Dow futures climbed 80 points.
The Labor Department said the U.S. economy added 103,000 nonfarm payrolls in September, while the numbers from the two previous months were revised higher.
“We’re still not at any kind of job level that could bring the unemployment level down, that still remains a big concern for the economy,” said Ellen Zentner, an economist at Nomura Securites, in a Reuters report. “But nevertheless the stronger than expected rise in non-farm payrolls today helps provide a little bit of relief to the markets that the U.S. economy is still hanging onto to recovery.”
The Dow ETF has gained at least 1% in each of the past three sessions and is trying to climb back above its 50-day exponential moving average, a key technical indicator. [Stock ETFs Rally Before Jobs Report]
In currency markets, the dollar declined after the employment report as markets were in a “risk-on” posture. PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) fell 0.3%.
SPDR Dow Jones Industrial Average
Chart source: StockCharts.com.
Full disclosure: John Spence owns UUP.