US pre-open: Stocks seen muted ahead of non-farm payrolls report
US futures pointed to a muted open on Wall Street on Friday as investors eyed the release of the keenly-awaited non-farm payrolls report.
At 1155 BST, Dow Jones Industrial Average and S&P 500 futures were flat, while Nasdaq futures were up 0.1%. On Thursday, the DJIA closed at a record level for the 56th time this year. Meanwhile, the S&P notched its sixth straight record close and 43rd this year.
Konstantinos Anthis at ADS Securities said : "The toll that Hurricane Harvey had on the US economy is yet unknown but it's bound to be reflected on this month's jobs report which will undoubtedly print on the soft side. However, there are some indications that this may be less bearish than some think. Strong Manufacturing and Services ISM figures and a positive ADP reading suggest that the NFPs might not come in as low as expected today, so we might be in for a surprise.
"As things stand right now, we believe that there's scope for positive surprise today based on the latest US data received this week and given that the market is net short on the dollar we could see significant buying from traders should the report print better than expected. On the other hand, a bearish reading from the NFPs today will not catch anyone by surprise and the impact on the dollar would be limited."
Anthis added that from a technical standpoint, a bullish NFP report will be instrumental in helping the dollar overcome critical resistance levels. He noted that USD/JPY is just shy of the 113.20 resistance, euro is barely holding above the 1.17 support and gold just broke below $1.270.
The non-farm payrolls report for September is due at 1330 BST, along with the unemployment rate and average hourly earnings. Consensus expectations are for a 90,000 jobs gain versus 156,00 in August.
Aside from the data, investors will also watch for speeches later in the day by Atlanta Fed President Raphael Bostic, Dallas Fed President Rob Kaplan, New York Fed President William Dudley and St Louis Fed President James Bullard.
On the corporate front, Costco Wholesale was likely to be active after its results late on Thursday beat expectations.
Elsewhere, Yum Brands spinoff Yum China Holdings could also be in focus after announcing its first dividend and an increased share buyback plan.