U.S. equity futures fell in premarket trading ahead of the monthly employment situation report. In addition, fears over the lack of a budget deal in the U.S. kept fear high and comments from European Central Bank President Mario Draghi indicate the Bank is less open to rate cuts than previously thought.

In other news, the Bundesbank slashed German growth forecasts for 2012 and 2013 in the wake of deteriorating European growth prospects. The Bank expects the German economy to grow 0.7% in 2012 vs. 1.0% previously and 0.4% in 2013 from 1.6% previously.

The Greek debt buyback plan is set to be complete by noon eastern today and comments and results should be released after that.

ECB President Mario Draghi said that rate cuts risk sparking currency devaluation and widespread inflation, scaring investors away from believing that the Bank is set to cut rates soon. Economists have been calling for the ECB to cut rates further to spur growth.

• S&P 500 futures fell 1.1 points to 1,411.9.
• The EUR/USD was lower at 1.2929.
• Spanish 10-year government bond yields rose to 5.536%.
• Italian 10-year government bond yields rose to 4.598%.
• Gold fell 0.21% to $1,698.20.

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Commodities

Commodities were mostly lower in early trade weighed down by global growth fears. WTI crude futures fell 0.12% to $86.16 per barrel and Brent crude futures rose 0.19% to $107.23 per barrel. Copper futures did rise 0.04% to $364.60 per pound as strength in Australia and China overnight buoyed the red metal. Gold was lower and silver futures fell 0.48% to $32.96 per ounce.

Currencies

The dollar reigned in currency market overnight against most pairs save for the yen in a clear risk-off tone in forex markets. The EUR/USD was lower at 1.2929 and the dollar fell against the yen to 82.37. Overall, the Dollar Index rose to 80.419 on notable strength against the euro, the Swiss franc, and the Swedish krone. In addition, the Aussie dollar was weaker against the greenback and the yen but still rose against the euro in overnight trade.

Premarket movers

Stocks moving in the premarket included:

• Comtech (CMTL) shares fell 12.67% premarket after the company reported weaker than expected earnings and lowered guidance.
• Smith & Wesson (SWHC) shares rose 2.86% premarket after the company reported better than expected earnings.
• Einstein Noah Bagels (BAGL) shares gained 7.66% after the company announced a special dividend of $4 per share.
• U.S. Bancorp shares (USB) shares fell 0.08% premarket as Moody's downgraded the company citing interest rate pressures.

Earnings

Notable companies expected to report earnings Friday include:

• The Bank of Nova Scotia (BNS) is expected to report fourth quarter earnings per share of $1.19 vs. $1.10 a year ago.
• KMG Chemicals (KMG) is expected to report first quarter earnings per share of $0.31 vs. $0.31 a year ago.

Economics

On the economics calendar Friday, nonfarm payrolls are due out. By the numbers:

• Median estimate is +86k, +90k private payrolls, range is an astounding 15k-145k.
• Unemployment rate estimate 7.9% vs. 7.9% previous.
• ISM manufacturing employment sub-index 48.4 vs. 52.1 previous.
• ISM non-manufacturing employment sub-index 50.3 vs. 54.9 previous.

Also, consumer sentiment and credit data are both due out.

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