US pre-open: Futures point to marginal gains ahead of payrolls

US futures pointed to a marginally higher open on Wall Street on Friday as investors erred on the side of caution ahead of the eagerly-awaited nonfarm payrolls report.

At 1205 GMT, Dow Jones Industrial Average futures were up 26 points or 0.2%, S&P 500 futures were 2 points or 0.2% higher and Nasdaq futures were up 0.3% or 12 points.

Meanwhile, oil prices were fairly steady following choppy moves on Thursday, with West Texas Intermediate up 0.2% to $34.65 a barrel and Brent crude 0.2% firmer at $37.15.

“Given the run higher since mid-February, it is not surprising that US futures are relatively quiet thus far on NFP day,” said Alastair McCaig, market analyst at IG.

“Markets will be looking for confirmation that the employment situation continues to improve, especially with regard to wage growth. A strong set of numbers this afternoon would leave Wall Street well-placed to continue its rally next week.”

Consensus expectations are for an improvement to 195,000 in the payrolls, while the unemployment rate is expected to remain unchanged at 4.9%.

Stocks in Europe were trading higher, supported by strength in the basic resources sector as metals prices rose, with investors there also looking to the payrolls report.

In corporate news, Big Lots rose in pre-market trade after the retailer’s fourth quarter net income beat expectations.

Staples was also in the black after the office supplies retailer said it swung to a profit of $86m in the fourth quarter versus a loss of $260m the previous year.

Hewlett-Packard rose in pre-market trade after the company’s first quarter earnings and revenue released late on Thursday surpassed analysts’ forecasts.

Elsewhere, Facebook is likely to be in focus following a media report that the social network is set to pay millions of pounds more in UK tax after a major shake-up of its tax structure.

According to the BBC, profits from the majority of its advertising revenue initiated in Britain will now be taxed in the UK. The company will no longer route sales through Ireland for its largest advertisers, which include Tesco, Sainsbury’s, Unilever and WPP.

In currencies, the dollar was 0.3% weaker against the euro, 0.1% stronger versus the pound and flat against the yen.