Stock futures turned higher on Friday morning after the latest employment report showed 161,000 jobs added to the U.S. economy in October. 

Futures had traded lower immediately after the jobs report was released.

S&P 500 futures were up 0.16%, Dow Jones Industrial Average futures gained 0.06%, and Nasdaq futures rose 0.1%. 

The number of jobs added to the U.S. economy came in slightly lower than expected, though August and September numbers were both revised upward. Economists anticipated 171,000 jobs to have been added to nonfarm payrolls in October.

The unemployment rate slipped to 4.9% from 5%, as expected. Average hourly earnings rose 0.4%, the highest since July, and above consensus of 0.3% growth. Earnings rose 2.8% year over year, highest since 2009. 

"Today's report is the first of two employment reports we will get ahead of the December FOMC meeting. If this labor market progress continues, we see a high likelihood of a 25bp hike at that meeting, barring other shocks. Following the November FOMC statement we bumped up our probability of a December hike to 75% and today's NFP print nudges it higher to 80%. A December hike is not a done deal, however. A key uncertainty is next week's US Presidential election and financial markets' reaction to the outcome."

The U.S. trade deficit declined 9.9% in September to $36.4 billion, its lowest level since early 2015. Exports increased 0.6%, while imports fell 1.3%. 

The Federal Reserve will make gradual rate hikes over the next two years, Atlanta Fed President Dennis Lockhart will give a speech to the National Association of Realtors in Orlando. Lockhart said he expects the economy to grow around 2% next year. 

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