May 6, 2016 / 11:22 AM / 2 years ago

US STOCKS-Futures lower ahead of monthly jobs report

* Futures down: Dow 35 pts, S&P 5 pts, Nasdaq 10 pts

By Tanya Agrawal

May 6 (Reuters) - U.S. stock index futures were lower on Friday as investors remained cautious ahead of the monthly employment report, which could influence the Federal Reserve’s interest rate hike plan.

* Nonfarm payrolls are expected to have increased by 202,000 last month, while the unemployment rate is seen holding steady at 5 percent, according to a Reuters survey of economists. The economy added 215,000 jobs in March.

* The U.S. Labor Department is scheduled to release the data at 8:30 a.m. ET (1230 GMT).

* Concerns over mixed economic data and the slowing pace of global growth have clouded the path of interest rate hikes in the United States. The U.S. economy grew just 0.5 percent last quarter on an annualized basis and inflation has been below the Fed’s 2 percent target for years.

* Global headwinds that have partly prevented the U.S. central bank from raising rates again may have dissipated, St. Louis Federal Reserve President James Bullard said on Thursday.

* Traders, however, are pricing in only one rate hike this year - at the end of the year. The Fed’s next meeting is on June 14-15.

* An accommodative Federal Reserve and a recovery in oil prices have helped U.S. stocks rebound from sharp losses at the start of the year. However, the rally lost momentum in the past two weeks, weighed by underwhelming quarterly earnings and economic data.

* First-quarter earnings for S&P 500 companies are mostly beating analysts’ expectations, but are still estimated down 5.3 percent from a year ago, according to Thomson Reuters data.

* Shares of Yelp were up 10.6 percent at $23.70 in premarket trading after the company’s revenue beat expectations.

* GoPro fell 6.4 percent to $10.02 after the wearable action camera maker said it would delay the launch of its drone until the holiday shopping season.

Futures snapshot at 7:02 a.m. ET:

* S&P 500 e-minis were down 5 points, or 0.24 percent, with 144,710 contracts traded.

* Nasdaq 100 e-minis were down 9.5 points, or 0.22 percent, on volume of 17,615 contracts.

* Dow e-minis were down 35 points, or 0.2 percent, with 20,510 contracts changing hands. (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)

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