Stock poised to rally after payroll report, Fed action

Wall Street was poised for a sharply higher open Friday after the government reported that the nation's payrolls shrank less than expected and the Federal Reserve injected more liquidity into the financial system.

The Labor Department said employers cut 20,000 jobs in April, while the unemployment rate dipped to 5 percent. This marked the fourth straight month of job losses, but the data signaled that perhaps the economy might be resisting falling into recession.

Meanwhile, the Fed said it will work with European central banks to expand a series of efforts to deal with the global credit crisis. The central bank will boost the amount of emergency reserves it …