Morning Breath July 6

Good morning. Happy Friday. Happy Employment Numbers Day.

The Asian/Pacific markets closed mostly down. China moved up 1%; South Korea dropped almost 1%. Europe is currently mostly down, but there are no 1% movers. About 30 minutes before the latest jobs data was released, futures here in the States were down a couple points.
The dollar is flat. Oil is down 2%, copper down almost 1%. Gold and silver are down.
Here are the numbers…
unemployment rate: 8.2% (same as last month)
nonfarm payrolls: up 80K
private payrolls: up 84K
average workweek: 34.5 hours (up 0.1 hours)
hourly earnings: $23.50 (up 6 cents)
April revised down from 77K to 68K.
May revised up from 69K to 77K
Futures immediately sold off and are currently down moderately, but it’s not a total bloodbath, yet.
Europe is righting itself…or at least delaying the inevitable. The housing market in the US has greatly improved. The third major obstable for the market to conquer is the employment situation, and so far it’s just not happening. There have been a very small number of new jobs created the last couple months, so it can be said the jobless recovery continues. A solid number (> 100K) would have lite a fire under the market. Instead this is one more piece of bad news the market will have to absorb. At least it’s got a cushion to work with. The indexes are are up a bunch off their early-June lows and can endure some selling pressure for a couple days and not lose it trend.
Spanish 10-year yields climbed over 7% today.
Amazon is developing a smart phone.
INFA is getting clobbered before the open.
My bias remains to the upside, but we gotta see how things shake out today and early next week. Wall St. is very forgetful, so you never know how it’ll react a few days later. More after the open.www.leavittbrothers.com