CAD Slides After Disappointing US Jobs Report

8:33 (Dow Jones) The Canadian dollar is under pressure after the release of the key US employment report for August as investors sought safety in the US dollar. The US dollar was C$0.9824 , from C$0.9780 before the data, and C$0.9770 late Thursday, according to CQG.

NEW YORK (Dow Jones)--U.S. stock futures extended premarket losses after data showing that the U.S. economy failed to add jobs for the first time in almost a year and the unemployment rate remained stuck at 9.1%.

About an hour before the opening bell, Dow Jones Industrial Average futures dropped 134 points, or 1.2%, to 11327. The Dow appeared set to extend its 120- point loss on Thursday, which snapped its streak of gains at four sessions.

Standard & Poor's 500-stock index futures lost 17 points, or 1.4%, to 1184 and Nasdaq 100 futures slid 27 points, or 1.2%, to 2190. Changes in stock futures don't always accurately predict stock moves after the opening bell.

Ahead of the weak data, DJIA futures shed 73, while S&P 500 futures declined 10 and the Nasdaq Composite lost 17. Changes in stock futures don't always accurate predict stock-market moves after the open.

Nonfarm payrolls were unchanged last month--the worst result since a small decline in Sept. 2010 --as the government sector continued to shed jobs, the Labor Department said Friday. The private sector added only 17,000 jobs.

About 45,000 telecom jobs were off company payrolls due to a Verizon Communication workers strike, contributing to the worst private-sector performance since Feb. 2010 . But payrolls were weak even without the one-off Verizon impact.

Data for the previous two months were revised down by a total 58,000 to show payroll increases of 85,000 jobs in July and only 20,000 in June, the government report showed.

The unemployment rate, which is obtained from a separate household survey, was unchanged at 9.1% last month. About 14 million Americans who would like to work can't get a job.

The results were worse than expected. Economists surveyed by Dow Jones Newswires had forecast payrolls would rise by 80,000 last month, with the unemployment rate unchanged.

Also grabbing attention, the U.S. Federal Housing Finance Agency , which oversees Fannie Mae and Freddie Mac , is preparing suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they sold during the housing bubble, according to a report in the New York Times .

The banks named in the report include Bank of America , J.P. Morgan Chase and Goldman Sachs Group .

Bank of America fell 6.8% in premarket trading after the Wall Street Journal reported that U.S. regulators asked the Dow component to show what measures it could take if conditions for the bank worsened. J.P. Morgan Chase declined 3%, and Goldman shed 2.4%.

In overseas markets, Europe was broadly lower, with the Stoxx Europe 600 losing 1.6%, after Greece's finance minister said the economy was expected to shrink more than expected and amid growing concerns over the country's ability to meet its deficit targets. Asian markets were also declined.

Investor jitters helped push gold futures above $1,872 an ounce, while crude oil futures slipped below $87 a barrel. The U.S. dollar edged higher against the euro but slipped against the yen.

Elsewhere, Netflix lost 9.6% after Starz Entertainment ended contract renewal negotiations with the company.

Campbell Soup edged up 1% after fiscal fourth-quarter results topped expectations, and Finisar ran up 7.9% after the company exceeded earnings estimates.

-By Brendan Conway