Stock market today: Dow, S&P 500, Nasdaq futures hold steady ahead of key jobs report

US stock futures were little changed on Friday morning as investors awaited the release of the government’s August jobs report.

Futures on the Dow Jones Industrial Average (YM=F) slipped below the flatline and S&P 500 (ES=F) inched higher after the two benchmark indexes posted their best day in nearly a month, while contracts for the Nasdaq-100 (NQ=F) rose 0.4%.

Stocks surged the day before after Fed governor Chris Waller remarked that he was leaning toward holding interest rates steady, prompting traders to pare bets that the Federal Reserve would raise rates in September. Markets now see a roughly 50-50 chance of the Fed moving to further restrict financial conditions, according to CME Group.

All eyes were on the August payrolls report, scheduled for release at 8:30 a.m. ET. Economists expect the US to have added 55,000 jobs, rebounding from an unexpected decline in job growth in July. The economic data out this week suggests the labor market remains stuck in a pattern of sluggish but stable growth.

In individual stock moves, Lululemon stock tanked 18% in premarket trading after the athleisure apparel company cut its revenue and profit guidance, and second quarter revenue declined. There are no other notable earnings reports scheduled for Friday.

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US dollar slumps to start September as yen surges on rate bets
Bloomberg reports:
The dollar slumped to start September as traders cut bets on a Federal Reserve rate hike this month and a surging yen rippled across global currency markets.
The Bloomberg Dollar Spot Index was on track to wrap up the week 0.7% lower after touching its lowest level since May on Thursday. Investors now see roughly even odds of a rate hike at the central bank’s Sept. 16 decision after Fed Governor Christopher Waller pointed to progress on inflation, adding to pressure on the greenback amid lingering concerns over the US fiscal outlook.
In Japan, the yen is on track for its best week since July, gaining 2.7% against the dollar. The move has been fueled by expectations that the Bank of Japan may raise its benchmark rate by a quarter point this month, while leaving the door open to faster hikes thereafter.
“The dollar took a step back this week as Fed speak leaned dovish and a yen rally spilled over to the broader USD complex,” said Noah Buffam, strategist at CIBC Capital Markets.
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