Stocks dipped as European officials put out mixed signals on safeguarding the region's banks as they pondered the impact of a Greek sovereign debt default.
The market is also nervous about the U.S. September payrolls report, due at 8:30 (ET), which is expected to show 60,000 new jobs were created and the unemployment rate remained steady at 9.1 per cent.
Britain's FTSE 100 edged 0.1 per cent lower, France's CAC 40 slipped 0.4 per cent, and Germany's DAX declined 0.4 per cent. Dow futures were down 12 points, or 0.1 per cent, at 11,034, while S&P 500 futures inched 4.1 points, or 0.4 per cent, lower to 1,153.50.
German Chancellor Angela Merkel and French President Nicolas Sarkozy meet this weekend to try to bridge differences over how to use the euro zone's financial firepower to support its banks.
Paris wants to tap the euro zone's 440-billion rescue fund to recapitalise its own banks, which have the largest exposure to peripheral euro zone debt, while Berlin insists the fund should be used only as a last resort when no national funds are available, Reuters reported.
Also affecting market sentiment was Moody's decision to downgrade the ratings of a dozen British banks, including Royal Bank of Scotland and Lloyds.
Gold steadied, edging $2.90 higher to $1,656 (U.S.) an ounce.
The Canadian dollar rose to 96.67 U.S. cents.
West Texas Intermediate crude oil slipped 52 cents to $82.07 a barrel.