Investing.com – Wall Street futures pointed to a higher open on Friday as investors looked ahead to the July employment report for signs of the strength of the U.S. labor market and its implications for the Federal Reserve’s monetary policy.
The blue-chip Dow futures gained 38 points, or 0.21%, by 10:49AM GMT, or 6:49AM ET, the S&P 500 futures rose6 points, or 0.25%, while the tech-heavy Nasdaq 100 futures traded up 11 points, or 0.24%.
The U.S. Labor Department will release its July nonfarm payrolls (NFPs) report at 12:30GMT, or 8:30AM ET, on Friday.
The consensus forecast is that the data will show jobs growth of 180,000, the unemployment rate is expected to drop back to 4.8%, from the prior 4.9%, while average hourly earnings are estimated to rise 0.2% after gaining 0.1% a month earlier.
An upbeat employment report will point to an improving economy and support the case for higher interest rates in the coming months, while a weak report would add to uncertainty over the economic outlook and push prospects of tighter monetary policy further off the table.
Despite the fact that some Fed officials still believe that they could raise interest rates this year, financial markets have dismissed the possibility.
Fed fund futures priced in only a 9% chance for a rate hike at the next meeting in September as of the close of trade on Thursday with the odds for an end-of-the-year hike at 32.1%.
The dollar has come under pressure amid these diminished expectations and moved lower on Friday while waiting for employment report.
Elsewhere on the economic front, the U.S. will release the June trade deficit at 12:30GMT, or 8:30AM ET, while consumer credit for the same month will be out at 19:00GMT, or 15:00ET.
Meanwhile, oil prices moved lower on Friday after crude had registered its largest two-day rally in a month on the back of a huge gasoline inventory draw in data released on Wednesday.
Market players looked ahead to weekly data from oilfield services provider Baker Hughes to be released later in the session. Last week, the number of rigs drilling for oil in the U.S. increased by three to 374, the fifth straight weekly gain and the eighth increase in nine weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
U.S. crude futures lost 0.83% to $43.58 by 10:51AM GMT, or 6:51AM ET, while Brent oil traded down 1.02% to $43.84.