Market Alert - Pre-Market

Futures vs FV: SP +16.43; DJ 184.16; NASDAQ +44.91

Futures were already higher ahead of the May jobs report as the President tweeted an hour before release he was looking forward to the report. Many figured he knew the numbers and was foreshadowing. Hence, rally. Obama did this as well. Presidents, as everyone else must, need to keep quiet on this stuff.

Jobs, May: 223K vs 190K exp vs 159K prior (from 164K)

Unemployment: 3.8% vs 3.9% prior. Lowest since 4/08

Wages 0.3% vs 0.1% prior; +2.7% year/year

Workweek: 34.5 as expected and unchanged

Participation: 62.7% vs 62.8% prior as 170K left the workforce. Those not in the labor force are at a new record of 95.9M. The ACA still has effects. It was never repealed, just tinkered with. It still has its impact and it shows.

Black unemployment: 5.9% versus 6.6% prior. Lowest since 1972.

Retail: 31K
Healthcare 29K
Construction 25K
Professional/Business 23K
Manufacturing 18K
Temp -7800


The other story continues to be trade and Europe 'strikes back' as many headlines say. With what? Strong words? Lots of talk about tariffs on our allies. If you have not, read my comments on that last night.


OTHER MARKETS
Bonds: 2.915% VS 2.86%. Bonds selling on the jobs report.

EUR/USD: 1.1664 vs 1.1692. Dollar rallies back against euro

USD/JPY: 109.66 vs 108.73

Oil: 66.49, -0.55

Gold: 1296.80, -8.2


So futures are up decently. Sold a bit after the jobs report as some fear Fed hikes. They have recovered to new pre-market highs, however.

You know what is next: the move needs to hold. That is the question for this market each session: can the upside hold? SP400, NASDAQ, SOX need breakout moves that are strong and stick. It is good that after a flop such as Thursday on the heels of a good Wednesday rally the futures are up on good news from the jobs report. Now, make it stick.



Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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