Market Alert - Pre-Market

Futures vs FV: SP +9.20; DJ +97.95; NASDAQ +26.64

A second big jobs beat has futures up as what is now the traditional pre-election ramp of jobs is in full swing. The parallels to 2012 are quite interesting when you put up the charts: diving through the first part of the year then suddenly turning upside, big. This despite payroll taxes for July rolling over. Oh well, never let facts get in your way.

That said, the report was solid.

255k VS 180K expected vs 292K prior (revised 5k)

Unemployment steady: 4.9%

Earnings: +0.3% vs 0.2% vs 0.1% prior; +2.7% year/year

Participation: 62.8% vs 62.7%

Household: +420K jobs; Into workforce +400K
Not in workforce: -184K

Looking at the breakdown but as ADP foreshadowed, it looks like, again, all service jobs at the first read:
Prof/Business: 70K
Healthcare: 43K
Leisure/Hospitality: 45K
Mining -6K
More on this later.


Futures jumped after jobs report but DJ30 is up big thanks to MRK as a BMY competing drug is not working.


OTHER MARKETS
Bonds: 1.532% vs 1.503% 10 year

EUR/USD: 1.1077 VS 1.1130

USD/JPY: 101.51 vs 101.307

Oil: 41.72, -0.21

Gold: 1353.40, -15.00


Futures are at their morning highs as the market looks good to move higher. Perhaps SOX, NASDAQ are going to win out and drag the rest of the market higher with them after their 3-4 week consolidations.

We will see what is offered up as a good buy. Friday, gapping upside -- not our favorite entry scenario but again we will see how they test and hold the moves.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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