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Futures up: Dow 0.68%, S&P 500 0.78%, Nasdaq 0.85%

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Lululemon sinks on lowering annual profit forecast

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DocuSign ( DOCU ) falls after quarterly results

(Updates before markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 6 (Reuters) -

U.S. stock indexes were set to open higher on Friday after a

strong jobs report calmed worries over the health of the labor

market, while Tesla shares rebounded on signs of cooling

tensions between CEO Elon Musk and U.S. President Donald Trump.

Data showed nonfarm payrolls increased by 139,000 in May,

beating forecasts for a rise of 130,000 jobs, according to

economists polled by Reuters. The unemployment rate stood at

4.2%, in line with expectations.

"Things are slowing, but they're not collapsing and

that's the good news. We're not seeing a serious degradation of

the jobs market," said Art Hogan, chief market strategist at B

Riley Wealth.

The payrolls data comes after a slew of soft economic

data this week that has raised concerns about an economic

slowdown caused by trade uncertainties.

Traders currently expect two rate cuts by the end of

this year, with the first 25 basis-point cut seen in September,

according to data compiled by LSEG.

Shares of Tesla rose 4.1% in premarket trading

after plunging about 15% on Thursday following Trump's public

feud with Musk, including threats to cut off government

contracts with Musk's companies.

Tesla shed about $150 billion in market value on Thursday,

weighing on Wall Street indexes. White House aides scheduled a

call between Trump and Musk for Friday, Politico reported,

likely to ease the feuding after an extraordinary day of

hostilities.

But the electric carmaker's stock briefly pared gains

after a

White House official

told Reuters there were no plans for a call on Friday.

On Thursday, investors also took stock of a leader-to-leader

call between Trump and Chinese leader Xi Jinping as they

confronted after weeks of brewing trade tensions and a battle

over critical minerals. The leaders, however, left key issues

unresolved for future talks.

U.S. equities rallied sharply in May, with the S&P 500 index

and the tech-heavy Nasdaq scoring their biggest

monthly percentage gains since November 2023, thanks to

softening of Trump's harsh trade stance and upbeat earnings

reports.

The S&P 500 remains nearly 3.3% below record highs touched

in February.

At 8:49 a.m. ET, Dow E-minis were up 290 points, or

0.68%, S&P 500 E-minis were higher 46.25 points, or

0.78%. Nasdaq 100 E-minis gained 183 points, or 0.85%.

Most megacap and growth stocks rose in early trading. Shares

of Amazon ( AMZN ) advanced 2.2%.

Broadcom ( AVGO ) shares fell 2.4% after the networking and

custom AI chipmaker's quarterly revenue forecast failed to

impress investors.

Lululemon shares lost 18.9% as the sportswear maker

cut its annual profit target, citing higher costs from Trump's

tariffs.

Shares of virtual document signing platform DocuSign ( DOCU )

fell 19% after first-quarter results.

Fed Governor Michelle Bowman is scheduled to speak at 10:00

a.m. ET.