Futures fall ahead of nonfarm payrolls report

Markets slightly lower ahead of government jobs figure -- last before the elections.

By Benzinga Nov 2, 2012 8:15AM

Zurbar comstocksU.S. equity futures fell slightly in early Friday trade ahead of the nonfram payrolls release, the last such release before the presidential election next week. See below for a full preview of the data by the numbers.


Boston Federal Reserve president Eric Rosengren spoke overnight and was extremely dovish, stating that the QE3 program should stay in effect until the unemployment rate falls to 7.25% and that interest rates should stay near zero until the unemployment rate falls to 6.25%.


Germany's finance minister Wolfgang Schaeuble spoke overnight, stating that G20 nations need further structural reforms and debt reduction and that he sees debt reduction as a global task.


The eurozone manufacturing PMI rose to 45.4 in October from 45.3 in September and beat expectations of a flat reading at 45.3. Strength in Germany and France was offset by weakness in Spain and Italy.

  • S&P 500 futures fell 1.7 points to 1,421.50.
  • The EUR/USD was was lower at 1.2878.
  • Spanish 10-year government bond yields fell to 5.599%.
  • Italian 10-year government bond yields fell to 4.93%.
  • Spot Gold rose 0.03% to $1,714.70 per ounce.

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Commodities were mixed in overnight trade ahead of the employment report. WTI crude futures rose 0.99% to $87.09 per barrel and Brent crude futures fell 0.46% to $108.20 per barrel. Copper futures rose 0.98% overnight to $355.20 per pound, extending gains seen in the metal from the past few days. Gold futures for December delivery fell 0.21% to $1,715.50 per ounce and silver futures fell 0.21% to $32.25 per ounce for the same delivery.



Currency markets showed dollar strength and euro weakness overnight as hopes of a strong employment report and weak manufacturing data in Europe weighed on markets. The EUR/USD was lower at 1.2878 and the dollar gained against the yen to 80.24, a sharp spike through the psychologically important 80 level overnight. Overall, the Dollar Index rose 0.36% to 80.33 on strength against all six currencies that make up the basket of the Dollar Index. In addition, the euro was broadly weak, falling against the yen, the Aussie dollar, and the pound.


Premarket Movers

  • Ford (F) shares rose 0.27% in premarket trading following the company reporting October auto sales that were fairly strong.
  • LinkedIn (LNKD) shares rose a whopping 9.02% premarket following a much stronger than expected earnings release after the close on Thursday.
  • Starbucks (SBUX) shares rose 7.25% premarket after the company posted strong earnings and increased its dividend.
  • Cisco Systems (CSCO) shares rose 0.43% as strong call buying over the last few days has sent the stock higher. Traders have bought some 430 calls for every 100 puts over the past 20 sessions.


  • Alpha Natural Resources (ANR) is expected to report a third quarter loss of $0.45 a share vs. a profit of $0.35 a year ago.
  • Chevron (CVX) is expected to report third quarter earnings per share of $2.85 vs. $3.67 a year ago.
  • Fortress Investment Group (FIG) is expected to report third quarter earnings per share of $0.11 vs. $0.08 a year ago.
  • Hess Corp. (HES) is expected to report third quarter earnings per share of $1.18 vs. $1.11 a year ago.
  • The Madison Square Garden Co. (MSG) is expected to report first quarter earnings per share of $0.18 vs. $0.28 a year ago.
  • Valeant Pharmaceuticals (VRX) is expected to report third quarter earnings per share of $1.16 vs. $0.66 a year ago.
  • Wabco Holdings (WBC) is expected to report third quarter earnings per share of $1.06 vs. $1.19 a year ago.


On the economic calendar Friday, it's the first Friday of the month, which means its nonfarm payrolls day. By the numbers:

  • Median estimate is 125,000 nonfarm jobs added, also 125,000 private jobs as well.
  • September reading was 114,000.
  • High estimate is 168,000, low estimate is 30,000.
  • Six-month average is 106,000.
  • ISM Manufacturing Employment 52.1 vs. 54.7 prior.
  • Challenger Job Cuts 48,000 vs. 34,000 in September, a five-month high.
  • Initial jobless claims four-week moving average is 367,000 vs. 375,000 at the time of the September release.

Also, factory orders are due out and the Fed's Williams is set to speak.


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More from Benzinga:

Nov 2, 2012 9:49AM
Such humor....

More people were hired, but unemployment rose because we started  to count some of the people we had previously decided not to count for political reasons.

We now added a small fraction back in and unemployment INCREASED to 7.9%.   Had they added back all of them unemployment would exceed 11%...

In 4 days we can fire the arrogant, corrupt, lazy imbecile whose Obamanomics has destroyed the middle class...    Mr. Obama we are coming out to FIRE you...  
Nov 2, 2012 11:59AM
The poster known as Mirage Guy is one, big walking political announcement.
His scotch is 'earned' off of the back of his workers,
his cigars are borrowed from Clinton.  His jokes are as stale as Milton Berle.

Yes, lets count the people we discounted before...Ha ha ha....
Yes, the numbers are all geared to make one guy 'look good' over the other...Ha ha ha ha..
Yes, in 4 days we can re-hire the guy who got it done,
DESPITE the Do Nothings in CONgress, and
NOT being able to hire your own staff, and
HAVING A RIGHT WING SCOTUS work against you, and
BEING blamed for the economic fallout (largest since the Great Depression) which
was caused by the previous guy,  who could not even write his own name, had to use a letter.
AND the "honorable" Sen McConnell promising to make him a 'one term' President.

Sorry, MG, but the public is onto the right wing scam and now on to you, phony Libertarian.

Still in all, wishing you a fine day.  Maybe you can get some of your workers to do three jobs instead of two and improve your numbers....

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