Live Premarket Commentary for 06-01-2012
Here again at Starbucks as a transformer blew up sometime this morning and no power to the building and I’ll be darned if I am going to walk up 27 floors of the Econintersect Building to wait it out in the dark.
Anyway, it doesn’t look very good for the markets this morning with the SP500 futures down as low as 1280 earlier and settling in at 1283, down20 at 8:45. The NQ 100 futures is down 47.70. That was before the unemployment numbers came in and they are bad, very bad, expect more downturn today. The Futures did not turn down but eased up to 1384 after the announcements. We’ll see how the cash crowd reacts to that once the markets open.
The US unemployment rate rises to 8.2% when no change was expected. The Non-Farms Payroll was revised lower to 77K from 115K and the Private Payrolls was revised down to 87K from 130K. The US Core Personal Consumption Expenditure (YoY) (April) cane in lower at 0.1% Vs. 0.2% expected and 0.2% prior.
“The dollar is up. Oil is down almost 3%, copper more than 1%. Gold and silver are down.
Here are the numbers…
unemployment rate: up to 8.2% (from 8.1%)
nonfarm payrolls: up 69K
private payrolls: up 82K
average workweek: 34.4 hours (up 0.1 hours)
hourly earnings: $23.41 (up 2 cents)
These are horrendous numbers, and to make matters worse, the March and April numbers were revised down.
The futures’ reaction was to sell off hard. They went from being down 15 to being down almost 30 in a split second.
Oil is now down > 4%. Gold and silver on the other hand jumped straight up and are now positive.
I’ve been preaching for a couple weeks to not take big chances, to not place big bets, to conserve capital. Hopefully you listened. The market has been held hostage to whatever news was crossing the wires, and that’s not an environment for technical traders to be very active.”
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Written by Gary