NEW YORK (CNNMoney.com) -- U.S. stocks could be on hold Thursday as investors await the closely watched employment report due at the end of the week for clues about the future direction of interest rates.
At 8:23 a.m. ET, futures were narrowly higher, with a comparison to fair value pointing to a flat to slightly positive open for Wall Street.
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Traders are anxious ahead of the September jobs report due out Friday. The government report is expected to show a gain of 100,000 jobs after a decline in August, according to economists surveyed by Briefing.com.
The number is likely to play a big factor as the Federal Reserve decides whether or not to keep cutting interest rates. A weak report could give policymakers room to keep lowering rates, while a much stronger report could rattle investors hoping for more cuts from the Fed.
In addition to the rate outlook, investors will be looking to the report for signs of economic weakness. A number that comes in well below expectations could reignite recession fears and overshadow any boost stocks get from the likelihood of more rate cuts.
"I can't see there being that much movement Thursday," said Mark Vitner, senior economist with Wachovia. He said it will take a number close to the consensus forecast on payroll growth Friday to give a lift to markets, while the risks to the market from either a too weak or two strong are likely to keep investors nervous ahead of the report.
<-------- Guess tomorrow will be a cautious day for traders..
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