U.S. Jobless Rate Drops, Stock Futures Extend Gains dec 2 2011

U.S. Jobless Rate Drops, Stock Futures Extend Gains dec 2 2011 ; U.S. stock futures extended gains after unemployment in the U.S. unexpectedly dropped in November to a two-year low of 8.6 percent. Futures on the Standard & Poor’s 500 Index expiring this month advanced 1.3 percent to 1,260.1 at 8:32 a.m. in New York.

Futures extended gains earlier following a Bloomberg News report that as much as 200 billion euros ($270 billion) of national central bank loans may be channeled through the International Monetary Fund.

The S&P 500 has rallied 7.4 percent this week and the market value of global equities increased by more than $3 trillion as the Federal Reserve and five other central banks lowered the cost of dollar funding and China cut the proportion that banks need to hold as reserve capital.

The S&P 500 has trimmed its 2011 loss to 1 percent after rebounding 13 percent from its low for the year on Oct. 3. Improving U.S. economic data has helped alleviate concern that the world’s largest economy will relapse into a recession as Europe’s debt crisis threatens to derail the recovery.

The Citigroup Economic Surprise Index for the U.S. has risen to the highest level since March 18. The gauge, which measures the rate at which data is beating or missing economist forecasts, reached 61.9 yesterday and has rebounded from a more- than two-year low of minus 117.2 in June. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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