US Treasury yields are; 2-year 0.66%, 5-year 1.38%, 10-year 2.05%, 30-year 2.86%. German bund 0.564%.
The consensus is for 203K jobs and an unemployment rate remaining unchanged at 5.1%. Last month’s jobs were a weak 173K so any potential revision is important. The critically important average hourly wages are expected to retreat slightly up +0.2% versus the previous +0.3%. Fed Chair Yellen must see an increase in wages to create confidence in raising rates. The Fed’s 6-1/2 years of obscene Keynesian money-printing is trying to create inflation but instead the US remains mired in disinflation and deflation. Inflation cannot exist without wage inflation so the wage number is arguably more important than the headline jobs number.
Note Added 8:00 AM EST: S&P + 8. Dow +68. Nasdaq +23. DAX +1.5%. CAC +1.8%. FTSE +1.4%. MIB +1.8%. Greece ASE +0.4%. WTIC oil 45.21. Brent oil 47.85. Gold 1106. 10-year yield 2.05%.
Note Added 9:27 AM EST:
At 8:30 AM EST, the Monthly Jobs Report is a huge disappointment. The United States economy is far weaker than anyone realizes. The BLS reports a paltry 142K jobs and the unemployment rate remains steady at 5.1%. Last month’s jobs (August) are revised lower from 173K down to 136K a loss of 37K jobs. July is revised lower from 245K jobs down to 223K a loss of 22K jobs. For the two-month period, the revisions are 59K jobs lower which stuns market participants. Jaws drop on Wall Street.
(As always, the daily market price action, economic data and events are explained at Keystone the Scribe's site.)