Stock index futures traded with caution on Friday, as investors keep their eyes peeled for a key jobs report, a day after the markets returned from the July 4th holiday.
S&P 500 futures (SPX) were flat, Nasdaq 100 futures (US100:IND) +0.1% and Dow futures (INDU) +0.1%.
The 10-year Treasury yield (US10Y) was down 3 basis points to 4.35%. The 2-year yield (US2Y) was down 3 basis points to 4.70%. See how Treasury yields have done across the curve at the Seeking Alpha bond page.
U.S. markets were closed yesterday on account of the U.S. Independence Day.
Traders also watched as 14 years of Conservative rule ended in the U.K. after the Labour Party won the general election by a landslide, with Keir Starmer becoming the new prime minister.
“The main event to look out for today is the U.S. jobs report for June. That will be a particularly interesting one, as the June survey data we’ve had so far has been weaker than expected, with both the ISM manufacturing and services prints in contractionary territory,” Deutsche Bank’s Jim Reid said.
The June nonfarm payrolls report is expected to land before the bell, and is anticipated to show a decline to 191K. The unemployment rate is forecasted to stay at 4%.
“The U.S. employment report is likely to continue to give mixed signals on the U.S. labor market. Remember that over half the companies asked for payrolls numbers do not give any response. While the fear of unemployment seems contained, the broader picture hints at some labor market cooling,” UBS’ Paul Donovan said.
“However, there have been doubts about the quality of household survey in recent months, so the fact that the unemployment number has been edging up has been viewed with a little bit of suspicion,” Reid added.
The Federal Reserve’s balance sheet is also due later in the day today.