U.S. Futures near the flat line after a disappointing NFP

Dow futures traded near the flat line before markets opened on Friday after a disappointing job report in September.

Futures traded on the Dow Jones Industrial Average rose just 13 points. S&P 500 futures rose 0.2%. Nasdaq 100 futures are up 0.58%. 10-year treasurie yield was about 1.57%.

The job report was a big disappointment for the markets, as the economy added just 194,000 jobs in September, well below the Dow Jones forecast of 500,000, the Department of Labor said.

On the plus side, the unemployment rate itself has fallen to a much lower point than economists had predicted. 4.8%, this is the same level observed at the end of 2016.

The bleak picture of work could hamper the Federal Reserve as it prepares to delay its $ 120 billion-a-month bond-buying program.

The labor ministry said on Thursday that unemployment claims for the previous week amounted to 326,000. That was lower than the 345,000 expected by economists. Meanwhile, ongoing claims fell by 97,000 to 2.71 million.

Shares rose during regular trading on Thursday as Washington reached a deal to raise the debt ceiling by December. The Dow gained about 340 points, or 0.98%, for its third consecutive positive session. The S&P 500 and Nasdaq Composite also rose for the third day in a row, gaining 0.83% and 1.05% respectively. The three main averages are about to end the week in the green.

Uncertainty over the debt ceiling has been an obstacle to the market, but other risks remain, including accelerating inflation and rising government yields.

10-year treasury yield was around 1.57% on Thursday, and UBS expects it to rise to 1.8% by the end of the year.

“The ever-improving U.S. labor market and steady U.S. economic growth must give the Federal Reserve the green light to start limiting its quantitative easing (QE) program,” the company wrote in a note to customers.

Wall Street is preparing for the third-quarter earnings season, which begins next week.