U.S. Stock Futures Trading in Tight Range Ahead of Jobs Data

U.S. stock futures were trading in a tight range during Sunday's evening deals, after major benchmark indexes ended the day with modest gains. The major futures indexes were slightly down one hour before the release of key jobs data, which is expected to show a continued recovery from the economic crisis brought on by the coronavirus pandemic. Investors appeared to be taking a wait-and-see approach as they await further clarity on the direction of the U.S. economy.

The Dow Jones Industrial Average futures were marginally lower, while the S&P 500 and Nasdaq 100 futures were both up slightly. In the previous session, the Dow, S&P and Nasdaq posted modest gains of 0.3%, 0.2% and 0.4%, respectively. Gains were driven by technology stock, while losses were led by energy and financials.

The focus of traders is likely to remain firmly on the upcoming jobs report. Analysts expect the report to show that the U.S. economy added 1.2 million jobs in August, following a surprise drop of 1.3 million in July. The report could also provide further insight into the current state of the labor market and the outlook for the U.S. economy.

In addition to the jobs report, Investors will be keeping an eye on global developments. In Europe, talks between the U.K. and the European Union have made little progress in recent days, with the two sides failing to bridge their differences on a post-Brexit trade pact. In Asia, China’s official manufacturing activity index fell to 51.0 in August, a six-month low, while Japan’s benchmark Nikkei 225 index closed the week with a 0.6% drop.

Elsewhere, Investors will be keeping an eye on the latest earnings reports. Companies including Boeing, Intel, Merck, Pfizer and Verizon Communications are expected to report their latest quarterly results this week.

Investors will also be monitoring the U.S. dollar, which has been steadily weakening in recent weeks. The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, was last seen trading at 93.24.