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US STOCK FUTURES EDGE UP AFTER LATEST EMPLOYMENT NUMBERS

The main U.S. equity index futures are higher, while longer-dated yields are roughly unchanged, after the release of the Labor Department's December employment report.

E-mini S&P 500 futures EScv1 are now up around 0.4% vs. a gain of about 0.2% just before the data came out. The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.18%. It was around 4.19% just before the numbers came out. The yield ended Thursday at 4.183%.

According to the BLS, 50,000 jobs were created in December vs. a 60,000 estimate.

The unemployment rate was 4.4% vs. the Reuters Poll calling for 4.5%.

Wage data on a month-over-month basis was in line with the forecast. The year-over-year number was hotter-than-expected.

Separately, delayed building permits were above the estimate, while delayed housing starts were less than expected.

According to the CME's FedWatch Tool, the probability that the Fed sits on its hands and leaves its current target rate of 3.50%-3.75% unchanged at its January 27-28 FOMC meeting is now around 95% vs. 88% just before the data was released. The chance that the FOMC cuts rates by 25 basis points is now around 5% vs. 12%.

Interest rate probabilities are now pricing in a total of 55.3 basis points of cuts through December 2026 vs. 54.7 basis points just before numbers came out.

Nearly all S&P 500 .SPX sector SPDR ETFs are quoted higher in premarket trading. Utilities XLU.P, up 1.3%, is posting the biggest gain.

The SPDR S&P regional banking ETF KRE.P is up about 0.7%.

Regarding the data, Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin, said:

"It’s nice to see that it’s not just health care that’s adding jobs. Seeing the manufacturing workweek dip a bit is a red flag. That tends to be a leading indicator."

Jacobsen added, " Aggregate weekly hours fell, which is also a little disconcerting. Productivity is output per hour, so productivity can rise due to stronger output or lower hours. It would be nice if both were trending higher to thread the needle of faster growth with lower inflation."

"December may have marked a turning point for the labor market where it starts to get some traction, but that assessment is still very tentative."

January University of Michigan preliminary sentiment data is due at 10 a.m. ET. The estimate is 53.5. The prior final print was 52.9.

Meanwhile, the top court in the U.S. is expected to deliver a ruling on the legality of President Trump's sweeping tariffs as early as Friday. Traders are anticipating heightened volatility across financial markets if the court strikes them down.

Here is a premarket snapshot from around 8:58 a.m. ET:

(Terence Gabriel, Chuck Mikolajczak)

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