Stock Market Today: Stocks edge higher with key jobs data report on deck

U.S. equity futures moved cautiously higher in early Friday trading, while the dollar extended its steepest weekly decline of the year, as investors braced for a key reading of the labor market amid the ongoing confusion tied to President Donald Trump's tariff strategy. 

Stocks ended sharply lower last night, with the S&P 500 falling more than 100 points, or 1.78%, to extend its worst five-day performance since September, as investors dumped U.S. stocks, and trimmed positions in the dollar, even as President Trump attempted to roll back some of the levies he placed on goods from Canada and Mexico just a few day earlier.

Markets were left guessing as to the what the President's next steps may be, with USCMA-compliant goods now exempt until next month, but possibly then vulnerable to new duties when the administration unveils so-called "reciprocal" tariffs on all of America's trading partners on April 2.

"I'm not even looking at the market because long-term the United States will be very strong with what's happening here," Trump told reporters in Washington late Thursday. 

The confusion on tariffs, meanwhile, is paired with a weakening economic data and a host of corporate warnings on consumer spending and rising prices, the latest of which came from retail giant Costco Wholesale  (COST)  last night.

"Consumers are still showing that willingness to spend, but they're being very choiceful where they're spending their dollars," said Costco's finance chief Gary Millerchip. "And we think that's likely to continue and maybe even become more choiceful as the impact of some return of inflation and the potential impact of tariffs could flow through as well."

Related: U.S. jobs cuts at 16-year high as trade war concerns hammer sentiment

The sternest test of that economic weakness will arrive this morning at 8:30 am Eastern time, with the Labor Department's February jobs report. 

Economists expect a headline hiring tally of 163,000, but softer data from payroll processing group ADP and corporate layoff tracker Challenger Gray suggest the chances of a weaker-than-expected reading that could underscore the current growth malaise.

Federal Reserve Chairman Jerome Powell will also speak on the broader economic outlook during an event in New York later this afternoon.

Stock futures, however, are edging higher into the start of trading, with the S&P 500 priced for a 15 point opening bell gain and the Dow Jones Industrial Average called 37 points higher.

The tech-focused Nasdaq, meanwhile, is priced for a 75 point advance following stronger-than-expected earnings from Broadcom  (AVGO)  that's helped lift some chip stocks.

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In overseas markets, the "phenomenal uncertainty" described yesterday but the European Central Bank following its sixth rate cut since June helped push the regional Stoxx 600 benchmark 0.62% into the red by mid-day trading in Frankfurt, with the FTSE 100 down 0.48% in London.

Overnight in Asia, soft trade date from China over the first two months of the year dragged the regional MSCI ex-Japan index 0.63% lower into the close of trading while the Nikkei 225 fell 2.17% to close at the lowest level in six months. 

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