US futures slide as focus turns to jobs report. Wait for movements in the Middle East

U.S. stock futures fell on Thursday as the focus cautiously returned to the economy and the monthly jobs report, while concerns over the Middle East conflict loomed in the background.

S&P 500 futures (ES=F) fell 0.3%, while contracts on the Dow Jones Industrial Average (YM=F) and the tech-heavy Nasdaq 100 (NQ=F) fell about 0.4%. All three gauges closed slightly above the zero line on Wednesday.

Some calm has returned to the market, which was rocked by escalating tensions in the Middle East, which led to sharp increases in oil prices. Israel has yet to launch its promised retaliation for Tuesday's Iranian missile attack, as Western and regional leaders try to stabilize the situation.

Investors are now gearing up for Friday's highly anticipated September jobs report after a surprise rise in private payrolls was coupled with signs of easing in the labor market. The focus is on whether the data reinforces the trend of steady cooling or shows signs of cracks.

New signs of deterioration could prompt the Federal Reserve to follow up its 0.5% interest rate cut last month with another huge move, although policymakers had expected a 0.25% cut in November. Stock prices soared in September as the market celebrated the central bank's aggressive move toward easing.

Weekly jobless claims and services figures due Thursday will be weighted to provide further guidance.

Meanwhile, the Israel-Iran crisis helped push oil prices higher for a third day, putting another potential drag on economic activity. Brent crude oil (BZ=F) and West Texas Intermediate (CL=F) futures both rose over 2% on Thursday.

On the corporate front, shares of Levi Strauss (LEVI) plunged over 10% premarket after the jeans giant issued disappointing sales guidance and said it was considering selling its Dockers brand. Tesla (TSLA) shares slipped further amid poor delivery numbers, as Reuters reported that the electric vehicle maker has halted online orders for its cheapest Model 3 in the United States.

Brent crude oil (BZ=F) and West Texas Intermediate (CL=F) futures both rose more than 1% on Wednesday, with traders paying a premium on the prospect of supply risks from increased Israeli-Iranian attacks.

In individual stock moves, shares of Tesla (TSLA) fell more than 3% as global deliveries rose in the third quarter but fell short of Wall Street estimates.

Meanwhile, shares of Nike (NKE) fell more than 6% after the athletic footwear giant withdrew its outlook for the year due to underperforming first-quarter sales. “We haven’t turned the corner yet,” the CFO told analysts in a conference call.

The story continues

On the macroeconomic front, the latest data from ADP released on Wednesday showed that the private sector added 143,000 jobs in September, above economists' estimates of 125,000 and well above the 99,000 in August. The release follows mixed job openings data and precedes Friday's key September jobs report, as investors ponder the Fed's rate-cutting path.

Read more: What the Fed's interest rate cut means for bank accounts, CDs, loans and credit cards