US pre-open: Futures edge higher ahead of non-farm payrolls report

LONDON (ShareCast) - (ShareCast News) - US stock futures edged higher on Friday, ahead of a reading on non-farm payrolls, which could pave the way for an interest rate hike by the Federal Reserve. The Dow Jones Industrial Average is expected to open approximately up 63 points, while the S&P 500 and the Nasdaq (NasdaqGS: NDAQ - news) are set to begin the final session of the week seven and 21 points higher respectively.

Non-farm payrolls could trigger rates hike "[This year] has largely seen the US markets react negatively to strong data, especially the non-farm payrolls figures," said Spreadex's financial analyst Connor Campbell.

"However, there have been signs that they aren't as averse to pro-rate-hike news as they have been previously.

"It (Other OTC: ITGL - news) arguably suggests that investors would rather a clarity-providing lift-off than the perpetually indecisive Fed they have had to endure so far this year." The report, due at 1330 BST, is expected to show the US economy added 201,000 jobs in September compared with 173,000 in the previous month, while the unemployment rate is forecast to have remained steady at 5.1%.

A report on average hourly earnings is on tap at the same time, with the September ISM reading for the New York area due out at 1445 BST.

At 1500 BST, investors will analyse a report on factory orders for August, while a number of Fed speakers will appear at a Boston Fed conference.

Boston Fed President Eric Rosengren will be on stage at 1330 BST, followed by Minneapolis Fed President Narayana Kocherlakota and Cleveland Fed President Loretta Mester , who will appear on separate panels at 1400 BST and 1600 BST respectively.

Fed Vice Chairman Stanley Fischer will also appear at the same event and is scheduled to speak at 1830 BST.

Chinese worries return Elsewhere, Asian stocks ended the week on a mixed note, as investors remained concerns the Chinese economy might slowdown, despite the slightly better-than-expected manufacturing data released on Thursday.

European stocks advanced, while oil prices edged higher, with West Texas Intermediate rising 0.80% to $45.10, while Brent edged 0.06% higher to $47.72.

The dollar was broadly flat against the pound and gained 0.32% and 0.26% respectively against the yen and the euro, while gold futures slid 0.60% to $1,106.93.

In company news, Advanced Micro Devices (NasdaqCM: AMD - news) climbed 1.16% ahead of the bell after saying on Thursday it will cut 5% of its workforce as part of its restructuring plan.

FedEx (Swiss: FDX.SW - news) gained 0.51% after the Wall Street Journal reported the delivery giant has encountered difficulties in its proposed takeover of Dutch rival TNT Express.