Dave Lutz, head of ETFs at JonesTrading, has an overview of today’s markets.
- The jobs report is coming today and 80,000 jobs is the current expectation.
- US markets are rising, but the rest of the world’s markets are mixed.
- Treasury yields are nearing three-month highs.
“Good Morning, and Happy Friday! Today is Payrolls day (80k expected — Everyone expecting a Miss on Hurricanes, I’m thinking a beat on Amazon’s Job fair) — Futures are starting mixed, with Nasdaq continuing to climb, while Spoos are resting basically unchanged. It’s a mixed bag in Europe, with the DAX climbing 20bp, but both Spain and Italy under pressure ahead of the Catalonia Parliament on Monday. London is trading higher as leadership angst weighs on Sterling – Retail and utility stocks weigh a touch across the continent – EasyJet at the bottom of the FTSE, but Autos in Europe acting well on Daimler #s. Still a touch quiet in Asia on China and South Korea’s last day of Holiday – TOPIX up 30bp – Hang Seng climbed 30bp, but Macau Casinos hit on a plunge in foot traffic – Taiwan climbed small, and Aussie leaps 1% as miners and Fins rebound
“Ahead of NFP and 4 Fed Speakers today, the Greenback and Treasury Yields nearing 3month highs, and Fed Funds at 82% for December into the 3day weekend for Bond traders. Political angst weighs abroad, with the Euro breaking below $US1.17 and Sterling nearing $US1.30. Periphery bonds are being sold in Europe, led by Spain as we await DBRS’s rating review today – Aussie $ getting smoked as doves circle on Harper comments. Gold is drifting around 6week lows, while Copper continues to add small to yesterday’s rally. The Energy complex is mixed, with WTI falling 1% and nearing a $US50 test, while Gasoline adds small as investors watch Platforms in the Gulf of Mexico being evacuated ahead of Nate. Softs look weaker across the board.”
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