US pre-open: Futures little changed ahead of nonfarm payrolls data

(Sharecast News) - Wall Street futures were little changed ahead of the bell as traders got set to return from the Independence Day break. As of 1300 BST, Dow Jones futures were down 0.05%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.03% and 0.14% higher, respectively.

The Dow closed 23.85 points lower in its truncated Wednesday session and were shut on Thursday in observance of the July 4th holiday.

Investors will be primarily focused on last month's nonfarm payrolls report at 1330 BST, with economists expecting to see the US economy add 200,000 new jobs in June, while the unemployment rate was expected to hold steady at 4%.

Interactive Investor's Richard Hunter said: "Prior to the public holiday, US markets had firmed again on renewed hopes of an interest rate cut in September, where the consensus is currently at a 73% probability, after some weak economic data. Lower payroll growth, higher weekly jobless claims and a contractionary service sector reading all seemingly played to the narrative that the economy is finally showing signs of capitulation under higher rates, potentially paving the way for an easing of monetary policy. The acid test this week comes later with the release of non-farm payroll numbers, where it is expected that 190000 jobs will have been added in June, compared to the previous month's figure of 272000, with the unemployment rate being unchanged at 4%.

"Further colour will be added to the state of the nation next week as the corporate earnings season kicks off in earnest. Delta Air Lines and PepsiCo report on Thursday, with the banking sector following on Friday with updates from Citigroup, JP Morgan Chase and Wells Fargo, in what could prove to be an early read across to the UK banks, who report half-year numbers around the end of the month. On the whole, investors are expecting a solid season, although guidance and outlook comments will be equally significant given concerns around a slowdown in the second half of the year."

Elsewhere on the macro front, the Federal Reserve's latest monetary policy report will be published at 1600 BST.

Reporting by Iain Gilbert at Sharecast.com