* 211,000 jobs added in April vs est. 185,000
* Unemployment rate drops to near 10-year low
* IBM tumbles after Buffett cuts stake by a third
* Futures up: Dow 9 pts, S&P 5 pts, Nasdaq 12.75 pts
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
May 5 U.S. stocks were on track to open higher
on Friday after a report showed U.S. job growth accelerated
sharply last month, pointing to the strength of the labor market
and increasing the odds of an interest rate hike next month.
However, the markets' gains are likely to be capped by IBM
, whose shares tumbled 3.3 percent premarket after Warren
Buffett said he sold about a third of his stake in the
Nonfarm payrolls rose by 211,000 in April, the Labor
Department said, well above the monthly average of 185,000 for
this year and a jump from the gain of 79,000 in March. The
unemployment rate fell to a near 10-year low.
"The market will like this number because there was some
concern that the economy was slowing a little bit," said Michael
Arone, chief investment strategist at State Street Global
Advisors in Boston.
The Federal Reserve was not "giving much credence to some of
the slower economic numbers in the first quarter, and this would
confirm that view."
The odds of a rate hike in June jumped to 75 percent, from
70 percent before the jobs report, according to Thomson Reuters
Dow e-minis were up 9 points, or 0.04 percent, with
23,475 contracts changing hands.
S&P 500 e-minis were up 5 points, or 0.21 percent,
with 126,096 contracts traded.
Nasdaq 100 e-minis were up 12.75 points, or 0.23
percent, on volume of 24,377 contracts.
Wall Street ended flat on Thursday as a steep fall in oil
prices countered some solid earnings reports.
Oil prices are trading near five-month lows, triggering
demand for safe-haven assets. Gold is likely to remain in favor
ahead of the final round of the French presidential election on
Among stocks, Zynga jumped nearly 11 percent to
$3.14 after the creator of FarmVille gave a strong
current-quarter bookings forecast.
Universal Display surged more than 17 percent to
$105.50 after the company's quarterly revenue blew past
VWR Corp slipped 4.4 percent to $32.55 after a
private equity firm said it would buy the lab supplies company
at a discount to its Thursday's close.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by