Via Dave Lutz at JonesTrading, here’s a quick guide to what traders are talking about ahead of the jobs report:
Good Morning — Prayers to our Law Enforcement officers as Snipers kill five police at Dallas protest late last night. S&P Futures are starting this Jobs Friday with a rally, adding 20bp early as M&A (PLCM) coupled with Earnings (GPS) outweigh the recent implosion in Biotech (JUNO). European markets are upbeat, with the DAX climbing 1.2% despite a plunge in German Exports. Fins are ripping higher, with EU Banks up 3% and Italy climbing 2.5% as Banco Popolare rips higher on stress test headers. FTSE is lagging, losing 20bp as Staples and Healthcare get whacked. Volumes are abysmal tho, with most EU exchanges trading 30-40% light to recent trends. Over in Asia, Nikkei lost 1.1% despite the Nintendo surge, as wages fell sharply in May – Hong Kong lost 70bp, while China lost 90bp on more fears of capital outflows. Aussie gained small, while Taiwan was closed due to approach of Typhoon Nepartac.
Ahead of the monthly U.S. jobs report, Treasuries are shrugging off sharp strength overseas, which saw Japanese bond yields plunge to fresh record lows, while German Bund Yields remain near yesterdays -18bp floor. The DXY is weaker, as Yen rips toward ¥100 per dollar, while Euro is popping on Banks, despite the Pound remaining below $1.30. Commodities are mixed, with Industrial metals like Copper higher despite more angst on Chinese Ore. Gold is retreating slightly, while Silver dances around unch. In energy, seeing a Slight rebound in WTI after yesterday’s 5% whack, while Natty and Gasoline both lag. Softs are all higher, led by oversold rallies in Beans and Wheat.
Ahead of us today, we get the Nonfarm Payrolls number at 8:30 (Street at 180k, many looking for a revision higher form last month’s depressing report on VZ strike) — The Energy Complex will be watching for the Baker Hughes Rig Count at 1 — followed by US Consumer Credit data at 3. “Commitment of Traders” data is due at 3:30 (unless delayed till Monday). It seems pretty quiet in Washington as lawmakers bolt towards Reagan National to head home for the weekend.