Before the bell: Stock futures slip ahead of jobs data - updated

Stock futures are down this morning, ahead of upcoming monthly jobs data. While right now indication is for a lower open, things could change significantly at 8:30 a.m., when the employment report is released. A report that may impact the Federal Reserve to cut rates would be welcome, while one that may show too much of a slowing in economic growth may not be as welcome. In the same manner, if the report surprises much on the upside, awaking inflation concerns and diminishing hopes of a rate cut, Wall Street could have another volatile day.
[Update: 8:38 a.m.: The Labor Department reported that U.S. nonfarm payrolls fell by an estimated 4,000 in August, as U.S. firms cut back their hiring in August for the first time since August 2003. The unemployment rate held steady at 4.6%. The decline is much weaker that expected and pundits think the Fed will now have to cut rates. We may now see a change in direction of stock futures, although this is a puzzling turn of events and may take time to fully digest.]
[update 8:54 a.m.: Concerns over the economy going forward seem to outweigh the possibility of a rate cut and futures have further declined, indicating a much lower start on Wall Street.]

Yesterday markets rallied following strong August retail sales data. Two other reports were released, worker productivity showed biggest gains in nearly two years and growth in the service sector was also better-than-expected. The market see-sawed a little since some thought these would not compel the Fed to cut rates. Meanwhile, foreclosures set another record. What may be most revealing ahead of today's employment report was yesterday's jobless claims report, the number of newly laid off workers filing claims for unemployment benefits, which fell to a five-weeks low.

Today, the employment report for the month August will be front and center of the Street's focus. The report will be released at 8:30 a.m., before the market opens, ,and economists are expecting nonfarm payroll to increase by 110,000 compared to a 92,000 rise in July. Unemployment rate is expected to remain steady at 4.6%. Similarly, hourly earnings should rise 0.3%, same as last month. All data is from Briefing.com. Bloomberg has slightly different data and reminds us that Bernanke said the Fed would pay special attention to the timeliest indicators.
Then, at 10:00 a.m., July wholesale inventories are due and expected to grow 0.5%, same as in June.