US STOCKS-Wall St set for higher open as labor market regains momentum

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* Costco drops after profit miss
* Banks rally after nonfarm payrolls report
* Futures up: Dow 0.8%, S&P 0.7%, Nasdaq 0.5%

(Adds comment, details; updates prices)
By Medha Singh and Shashank Nayar
March 5 (Reuters) - Wall Street was set to open higher on
Friday after data showed faster-than-expected jobs growth in
February, reinforcing bets on an economic rebound driven by
massive fiscal stimulus and vaccination drives.
Nonfarm payrolls surged 379,000 jobs last month after rising
166,000 in January. Economists polled by Reuters had forecast
February payrolls increasing by 182,000 jobs. Benchmark 10-year U.S. Treasury yields US10YT=RR hit a new
one-year high of 1.626%, with rate-sensitive Bank of America
Corp BAC.N , Citigroup Inc C.N , JPMorgan Chase & Co JPM.N ,
Goldman Sachs GS.N , Wells Fargo & Co WFC.N and Morgan
Stanley MS.N jumping between 1.7% and 2.1% in premarket
trading.
Federal Reserve Chair Jerome Powell on Thursday offered an
optimistic view of the labor market, but cautioned a return to
full employment this year was "highly unlikely." His comments disappointed investors who expected him to act
on the recent spike in the U.S. 10-year Treasury yield
US10YT=RR that has set the S&P 500 and the Nasdaq on course
for their third straight weekly decline.
"Markets have reached a point where the reaction to the
yield movements has gotten satiated with investors looking at
the possibility that they might have oversold," said Art Hogan,
chief market strategist at National Securities in New York.
The tech-heavy Nasdaq on Thursday slipped into negative
territory on the year, ending just short of 10% from its Feb. 12
intraday record high that would confirm a correction.
At 8:49 a.m. ET, Dow E-minis 1YMcv1 were up 251 points, or
0.81%, S&P 500 E-minis EScv1 were up 27.75 points, or 0.74%
and Nasdaq 100 E-minis NQcv1 were up 59.25 points, or 0.48%.
Investors are also keeping an eye on progress in President
Joe Biden's a $1.9 trillion coronavirus aid bill with a sharply
divided U.S. Senate expected to begin a contentious debate on
Friday on the legislature. In a bright spot were energy companies including Chevron
Corp CVX.N and Exxon Mobil Corp XOM.N which firmed about 2%
each as oil prices jumped to a near 14-month high. O/R
Costco Wholesale Corp COST.O dropped 1.5% after the
warehouse club operator missed estimates for second-quarter
profit. Norwegian Cruise Line Holdings Inc NCLH.N slumped about 6%
on a $1.6 billion stock sale.