Dave Lutz of Stifel, Nicolaus passes along the top topics about which traders are chatting:
Good Morning, and welcome to Jobs Friday! The S&P 500 rallied after the past eight straight jobs reports, a streak unmatched at least since 1998, and Stocks have risen following 12 of the past 13 jobs reports since the end of 2012. US futures are paying attention, with SPX up 30bp and NDX up 50bp early. Strong gains overseas, with Germany adding 1% as S&P affirms AAA, but volumes have slid off slightly. Eyes are on Portugal, where the street is expecting a possible upgrade announcement — EU Fins are up 1% as Yields are dropping. Japan markets were up small, having their worst week since October on profit-taking – Slowing Exports in China weighed on Emerging Asian markets — with Korea, Thailand and Malaysia all in the red. Commodity players have been focused on Aussie’s market as Australia was one of the worst performing markets over the week, off almost 2% as the CRB rests on 18month lows – Aussie miners were hit for almost 4% this week (BHP — 3.6%, RTP for 7%, Fortescue for 11%) — Junior miners were hit a lot worse. Single Stock movers in the US include ANF (+15% on earnings), MSFT (+1% on Barc u/g) and AA (-7%, Impairment charge). A basket of Biotech names are continuing Yesterday’s rally as well..
Heading into our Payroll print, the US 10YY is off small, resting near Yesterday’s lows as Yields gave back all of the ADP gains — The DXY has some upward momentum, most of the gains coming against Yen — So we have a headwind on commodities — but most have a upward trajectory, driven by China trade data — Copper is up 40bp, but WTI is leaping 1% after touching multi-month lows yesterday – China’s crude-oil imports in December rose to a record high on a daily basis. Gold is adding another 40bp as US Inflation expectations have popped again in the last 24 hours — and eyes will be on the WASDE report at Noon as many AG commodities have been crushed of late. NFP at 8:30, Lacker speaks at 8:45, Wholesale Inventories at 10, The week’s biggest POMO operation at 11, WASDE data at 12, and Bullard is speaking on the economy at 1.