US pre-open: Futures inch lower ahead of jobs data, yields stay elevated

(Sharecast News) - US stock futures were pointing to small losses ahead of the opening bell on Friday as traders return to their desks following a national holiday and await the all-important non-farm payrolls report. With just over two hours to go before markets open, Dow futures were down 0.1% while the S&P 500 and Nasdaq were 0.2% lower. US equity markets were closed on Thursday for a national day of mourning to honour former president Jimmy Carter.

"Traders are mostly keeping to the sidelines ahead of this afternoon's non-farm payroll release. Despite this, they can't ignore US Treasury yields which remain elevated," said David Morrison, senior market analyst at Trade Nation.

Ahead of the opening bell, the yield on 10-year US Treasuries was 1 basis point higher at 4.698%, staying close to their highest levels since last April.

"This is creating a bit of a headwind for US equities, and this will increase should yields rise further," Morrison said.

Friday's labour market data, due out from the Bureau of Labor Statistics at 0830 ET, is expected to show the US economy added 160,000 jobs in December, down from 227,000 in November, with the jobless rate remaining at 4.2%. Wage growth, meanwhile, is forecast to ease slightly to 0.3% from 0.4%.

Also due for release during Friday's session will be the closely watched consumer sentiment index from the University of Michigan, out at 1000 ET, which is expected to produce a print of 73.8 for January, down slightly from 74.0 in December.

In corporate news, Walgreens was making headlines after beating forecasts with its first-quarter results and maintaining full-year guidance. Futures of the pharmacy chain were up 9% ahead of the bell.

Shares in Constellation Energy were also set to jump 6% after the news that the power generator is to merge with privately owned peer Calpine in a deal worth $26.6bn.