U.S. stock index futures signaled a lower open on Friday after fluctuating as investors digested February's employment report.
"It's wages they're concerned about. Average hourly earnings can't get lift off here," said John Canally, strategist and economist at LPL Financial. He doesn't see the Fed hiking until wage gains strengthen.
The report, showed a gain of 295,000, above expectations of 240,000 in February, down from 257,000 in January. The unemployment rate fell to 5.5 percent, while hourly wages ticked up 0.1 percent, below consensus and off the surprise 0.5 percent gain in January.
"The labor market is tightening but it's not tightening enough to push average hourly earnings," Canally said.
Bond yields rose, with the U.S. 10-year Treasury note yield at 2.20 percent, on increased anticipation of an interest rate hike sooner rather than later.
"I think a 5.5 percent unemployment rate clinches a June rate hike. which means 'patient' comes out in a week and a half," said Peter Boockvar, chief market analyst at The Lindsey Group.
"I don't really think much of it. I would have liked to see something more dramatic in one direction or another. I think the economy is flattening out. People can look at it and pull anything they want. Labor force participation seems stuck."said Gary Chaison, professor at industrial relations at Clark University.
However, he said "I think this will give some encouragement to the Fed to act next month (which is thinking) we have to get here. We have to jump start the system."