U.S. stock-index futures scaled back losses on Friday after the government reported the economy added 209,000 jobs last month and the jobless rate rose to 6.2 percent.
"The bottom line for employment reports these days is what it means for the Federal Reserve. With wage growth coming in less than expected and the unemployment rate ticking up one tenth, the Fed probably feels comfortable at this time with its stance," emailed Dan Greenhaus, chief strategist at BTIG.
"That said, one month is not a trend and the trend remains in place; job growth north of 200,000 is occurring more regularly and wage and inflation pressures should build over time. In that regard, today's report doesn't really advance the ball for either side," Greenhaus added.
Down 80 points ahead of the data, futures for the Dow stepped briefly in positive territory and were lately off 9 points.
The benchmark 10-year Treasury yield fell a basis point to 2.548 percent, down from 2.582 percent ahead of the employment report. Gold turned higher and the U.S. dollar held steady against other currencies.
In June, 288,000 jobs were created and the jobless rate stood at 6.1 percent.
Dallas Fed President Richard Fisher told CNBC on Friday that he believes the central bank could begin hiking interest rates early next year if the economic data continues to come in strong.