Stock futures turned higher on Friday morning after the latest reading on the U.S. labor market fell short of estimates. 

S&P 500 futures were up 0.25%, Dow Jones Industrial Average futures added 0.29%, and Nasdaq futures rose 0.4%.

The U.S. created 151,000 jobs in August, the Bureau of Labor Statistics said Friday. The reading was below consensus of 180,000 jobs. July's reading was revised to 275,000 from 255,000. The unemployment rate held firm at 4.9%. Analysts expected the rate to dip to 4.8%. 

The August jobs report is under even more scrutiny ahead of the Federal Reserve meeting on Sept. 20-21. Investors will debate whether this weaker report will rule out a rate hike this month. 

The chances of a September hike in interest rates currently sit at 24%, according to CME Group Fed funds futures. A December hike has greater odds at 42%. 

The U.S. trade balance deficit shrank 11.6% to $39.5 billion in July, according to the U.S. Census Bureau. Analysts had expected the deficit to narrow at a slower pace to $41.3 billion.  

Lululemon(LULU) - Get Report tumbled 9% after reporting in-line quarterly earnings and issuing a soft outlook. The yoga apparel chain earned an adjusted 38 cents a share, as analysts expected, while revenue of $514.5 million fell short of estimates. Third-quarter earnings guidance of 42 cents to 44 cents a share was on the weaker side of consensus. Chief Financial Officer Stuart Haselden said, "Traffic continued to be a headwind, and those headwinds extended into the third quarter." 

Gunmaker Smith & Wesson (SWHC)  increased 1% after a better-than-expected quarter. Adjusted first-quarter earnings of 62 cents a share and revenue of $207 million beat consensus of 54 cents and $198.2 million. Second-quarter earnings guidance of 53 cents to 57 cents a share came in far higher than a targeted 36 cents. 

Ambarella(AMBA) - Get Report was 4% higher after topping profit and sales guidance in its second quarter. Earnings of 54 cents a share came in 16 cents more than estimated, while revenue of $65.1 million beat by nearly $1 million. 

Hewlett Packard Enterprise(HPE) - Get Report  was active in premarket trading on reports it is considering a sale of its software business. The tech company is reportedly in negotiations with private-equity firm Thoma Bravo to sell the unit for between $8 billion and $10 billion, Reuters reported. The company has already received offers as high as $7.5 billion.