Futures rise into payrolls report

US markets are set for a strong open after European central banks discussed easier monetary policy and ahead of US jobs data.

By Benzinga Jul 5, 2013 8:24AM

zurbar age fotostockBy Matthew Kanterman


U.S. equity futures rose into the much anticipated Employment Situation Report. Nonfarm payrolls are expected to have gained 161,000 in June, below the pace set in May, but the unemployment rate is expected to tick down to 7.5%.


In other news, the Bank of England and the European Central Bank both left rates on hold Thursday. However, both banks took the unprecedented step of issuing forward guidance, a play out of the Federal Reserve's playbook, that is a sign that the Bank's will push for more transparency and look to use more verbal easing.


The Chinese financial regulator issued a statement overnight, saying that the Chinese authorities will maintain prudent monetary policy, that policy will seek to balance growth with financial reforms, and that the government is set to give banks the ability to write off more bad loans.


Steven A Cohen, of SAC Capital, is now expected to avoid criminal charges in the insider trading scandal. However, his reputation has already taken a blow and his fund has seen massive client withdrawals already.

  • S&P 500 futures jumped 14.6 points to 1,623.70.

  • The EUR/USD was lower at 1.2874.

  • Spanish 10-year government bond yields fell 4 basis points to 4.61%.

  • Italian 10-year government bond yields fell 5 basis points to 4.35%.

  • Gold fell 1.27% to $1,236.00 per ounce.

Asian markets

Asian shares closed higher overnight in the wake of the extremely dovish statement from both the BOE and the ECB. The Japanese Nikkei 225 Index gained 2.08% and the Topix Index rose 1.53%. In Hong Kong, the Hang Seng Index rose 1.89% while in China, the Shanghai Composite Index gained 0.05%. Also, the Korean Kospi fell 0.32% while Australian shares rose 0.98%.


European markets

European shares were mixed after strong gains Thursday on the back of the shift in policy from new BOE Governor Mark Carney and ECB President Mario Draghi. The Spanish Ibex Index fell 0.61% and the Italian FTSE MIB Index lost 0.35%. Meanwhile, the German DAX was flat and the French CAC 40 Index fell 0.2% while U.K. shares gained 0.24%.


Commodities

Commodities were mostly lower overnight with precious metals dropping sharply as the dollar strengthened. WTI crude futures fell 0.15% to $101.90 per barrel and Brent crude futures gained 0.15% to $105.70 per barrel. Copper futures fell 2.41% to $309.80 per pound. Gold was lower and silver futures dropped 3.02% to $19.11 per ounce.


Currencies

Currency markets saw broad dollar strength overnight as the signs of the end of Fed easing coupled with increased stimulus from abroad boosted demand for the dollar. The EUR/USD was lower at 1.2874 and the dollar was flat against the yen at 100.40 after dropping as low as 99.89. Overall, the Dollar Index rose 0.93% on strength against the pound, the euro, the Swiss franc, and the Canadian dollar.


Earnings reported Wednesday

Key companies that reported earnings Wednesday include:

  • International Speedway (ISCA) reported second quarter earnings per share of $0.51 vs. $0.50 expected on revenue of $178.4 million vs. $182.3 million expected.

Earnings

Notable companies expected to report earnings Friday include:

  • Tech Data Corp. (TECD) is expected to report first quarter earnings per share of $1.03 vs. $1.24 a year ago on revenue of $6.43 billion vs. $5.9 billion a year ago.

Economics

On the economics calendar Friday, the Employment Situation Report is due out. Economists surveyed by Bloomberg expect Nonfarm payrolls to have gained 161,000 in June vs. 175,000 in May. The unemployment rate is expected to have fallen to 7.5% from 7.6%. Also, the Canadian employment report and Ivey PMI are due out and the global semiconductor sales report is expected.

4Comments
Jul 5, 2013 9:31AM
avatar

Oil is up close to $102, manipulators liking job reports; More driving and usage..

Gold down again, sense of more recovery, stocks going up and inflation still under control.

Stocks should be up for the day..Maybe big, like Asia..? Europe so-so.

 

Most jobs gained were in Retail/Service or Professional Sectors..

Manufacturing jobs down, But Auto Sector helped pick up some of slack.

Governent jobs were in a pullback..

Previous Months, were revised slightly upward also..

Un-employment stayed at 7.6%..

Underground Economy or Shadow Jobs are in a disturbing climb.

An hour later and when will MSN....Give a report....You are welcome.

Jul 5, 2013 8:48AM
avatar

In a Large poll....Only 15% (including myself) said jobs added would be over 175,000.

 

They came in at "195,000" ....you have to believe.

 

And 15 minutes after the release, and MSN still doesn't display the "NEWSBREAK."

Jul 5, 2013 9:16AM
avatar

Mirage....Don't really know what you want to believe ??

 

I guess if the Report from the BLS had said it only added 135,000;

YOU WOULD HAVE BEEN "ELATED"..........And said "I TOLD YOU SO"...

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