US pre-open: Futures edge lower as Wall Street awaits further clues on rate hike

US stock futures were slightly lower on Monday, as investors remained wary of making big bets after Friday’s jobs report shortened the odds of an interest rate hike in December.

The Dow Jones Industrial Average is expected to open down approximately 46 points, while the S&P 500 and the Nasdaq are set to begin the first session of the week six and 11 points lower respectively.

December rate hike on the cards

On Friday, a report on non-farm payrolls for October showed the US economy added 271,000 jobs last month compared with analysts’ forecast for a 180,000 gain, meaning the Federal Reserve is now a lot more likely to hike interest rates next month than it has been at any time this year.

“The relatively calm initial reaction to the strong jobs report suggests the uptrend can remain intact but is just due a correction,” said CMC Markets’ analyst Jasper Lawler.

“There just needs to be enough confident dip-buyers to match those taking profits to stop a minor correction turning into another August-style rout.”

The economic calendar is largely quiet on Monday, with no first-tier reports scheduled for release, although investors will analyse a reading on labour market conditions for October at 1500 GMT.

Market participants will also hear from Boston Fed President Eric Rosengren, who is due to speak at an event in Rhode Island at 1700 GMT.

In company news, Berkshire Hathaway declined 0.78% in pre-market trading despite saying late on Friday that its third quarter profit more than doubled.

Dish Network, Priceline Group and Sotheby’s will release results ahead of the bell, while Hertz Global Holdings will report after the close.

Chinese concerns weigh on Asian stocks

Elsewhere, the Shanghai Composite rose to its highest level since late August, although disappointing data from China dragged the rest of the Asian market lower, with the exception of the Nikkei Stock Average.

European equities were trading slightly lower, while oil prices advanced, as West Texas Intermediate gained 1.62% to $45.02 a barrel, and Brent rose 1.90% to $48.34 a barrel.

The dollar was on the back foot against the pound and the euro, losing 0.38% against both but 0.20% firmer against the yen, while gold futures climbed 0.50% to $1,095.27.