Market Alert - Pre-Market

Futures vs FV: SP 2.5; DJ 36.00; NASDAQ 13.00

Futures are well off the pre-jobs highs, moving back near flat as jobs deflated optimism things were rosy for the US economy. It was the rubber match after a weak March, stronger April. Yet, now we see that not only was May weak, but that those prior months were revised lower.

Non-Farm: 138K vs 185K exp vs 174k (from 211K). With the revisions, just 121K jobs per month the prior 3 months

Unemployment: 4.3% from 4.4% but that was due to participation tumbling.

Participation: 62.7% versus 62.9

Wages: 0.2% versus 0.2% prior (from 0.3%). 2.5% year over year. Wages again concentrated in the low paying jobs.

Full time -367K. Part time +133K. There you have it. The low paying jobs have it as this economy still kills off the full time jobs.

The ONLY good thing to come from this report: it underscores how poor the US economy remains despite some recent 'hope' PMI data that tries to paint a better picture. Weaker economy and PERHAPS Congress gets off its politically driven agenda and lard-ass nature and gets to fixing taxes, healthcare, and regulations.


Earnings beats: AVGO; LULU; WDAY; VMW; FIVE

Misses: RH. Wow what a miss from this store that was not bad the prior quarter.


OTHER MARKETS
Bonds: 2.18% vs 2.21%

EUR/USD: 1.126. Euro moves up versus dollar after jobs report

USD/JPY: 110.71, -0.61. dollar drops

Oil: 47.28, -1.08. Tumbling again post exit of the climate accord as fears of increased supply as a result dominate.

Gold: 1276.10, +7.6


The resilient market will have a chance to show it remains so. Breakouts again on Thursday after a 1-2-3 pullback. Textbook strength. Is it still there after a 2nd disappointing jobs report in 3? Futures are well off morning highs, clearly not happy, but not throwing in the towel yet.

The data is not likely to change the Fed's mind in itself and that troubles the market. And while it points to a pathetically weak and chronically and structurally broken jobs market, Congress is too stupid to see the structural decay in order to drop its political divide and do something. THAT is what the market has to deal with.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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