07Apr2017 Pre-Market Commentary: Wall Street Pulls Back After US Attacks Syria, Crude Prices Jump, US Dollar Falls Fractionally, Unemployment Rate At 4.5 Percent

Written by Gary

US stock future indexes are pointing towards a lower opening after weaker-than-expected jobs report (SPY -0.3%). Investors have partially digested news of a US Tomahawk strike against Syrian basis last night. Crude prices climbed into the high 52 handle, but have since pared gains.

Here is the current market situation from CNN Money
	European markets are lower today with shares in Germany off the most. The DAX is down 0.61% while France’s CAC 40 is off 0.30% and London’s FTSE 100 is lower by 0.04%.

Looking at the last three columns (below), the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.

US stock futures slide after weaker-than-expected jobs report

What Is Moving the Markets

Here are the headlines moving the markets.
	U.S. weekly jobless claims post largest drop in almost two years WASHINGTON, (Reuters) – U.S. employers added the fewest number of workers in 10 months in March, but a drop in the unemployment rate to a near 10-year low of 4.5 percent pointed to a labor market that continues to tighten.
	EU regulators to approve Fox takeover of Sky: sources BRUSSELS/LONDON (Reuters) – Rupert Murdoch’s Twenty-First Century Fox is set to win unconditional EU antitrust approval for its 11.7-billion-pound ($14.5 billion) takeover of European pay-TV group Sky , two people familiar with the matter said on Friday.
	Stock futures recover from a drop after U.S. missile strike on Syria (Reuters) – U.S. stock index futures were flat on Friday, recovering from a drop after a U.S. missile strike in Syria, which U.S. officials described as a one-off attack that would not lead to wider escalation.
	Weak crude oil stunts U.S. energy IPOs, boosts outlook for M&A LONDON/NEW YORK (Reuters) – The stream of U.S. energy companies going public at the start of 2017 has dried up on concerns over the future direction of oil prices, but private buyers seeking mergers and acquisitions are ready to take advantage of the volatility to secure cheap deals.
	Exclusive: Yum’s KFC to curb antibiotic use in the chickens it buys LOS ANGELES (Reuters) – Yum Brands Inc’s U.S. KFC chain plans to curb the use of antibiotics in its chicken supply, making it the last of the big three chicken restaurants to join the fight against the rise of dangerous antibiotic-resistant bacteria known as superbugs.
	U.S. South, not just Mexico, stands in way of Rust Belt jobs revival MOBILE, Ala. (Reuters) – In the years since the 2008 financial crisis, this southern U.S. port city has attracted a new Airbus factory, seen its steel industry retool, and gained thousands of jobs building the Navy’s new combat vessel.
	Hyundai, Kia to recall nearly 1.5 million vehicles over engine issue SEOUL (Reuters) – Hyundai Motor Co and Kia Motors Corp said on Friday they plan to recall nearly 1.5 million vehicles in the United States and South Korea due to engine issues, the latest blow for two firms already struggling in key markets.
	U.S., Japan in talks to prevent China acquiring Westinghouse: U.S. official WASHINGTON (Reuters) – The Trump administration and the Japanese government are in discussions to ensure that the bankruptcy of Toshiba Corp’s U.S. unit Westinghouse Electric Co does not lead to U.S. technology secrets and infrastructure falling into Chinese hands, a U.S. official said on Thursday.
	On trial for bribery, Samsung boss lets lawyers do the talking SEOUL (Reuters) – The third-generation leader of South Korea’s top conglomerate was mostly silent at his first court appearance in what has been called the “trial of the century,” as his lawyers labored to portray him as an innocent bystander in a graft scandal.
	First Images Of Aftermath Of “Inefficient” US Missile Strikes Emerge Russia’s Rossiya 24 news channel has revealed the first footage from the Shayrat airbase, which the United States hit with a volley of 59 Tomahawk missiles after an alleged “chemical attack” in Idlib earlier this week. Russian Defence Ministry spokesman Maj. Gen. Igor Konashenkov said “the combat efficiency of the US strike was very low”, adding that only 23 of the 59 Tomahawk cruise missiles reached the Shayrat air base in the province of Homs and as the following images suggest, they were not as damaging as some may have hoped… Runway, taxi way, parked jets weren’t damaged as a result of U.S. airstrikes, Interfax reports, citing Russian Defense Ministry.
	RBC Explains Today’s Rush To BTFD After plunging 150 points on Syria airstrike headlines overnight, Dow futures have retraced much of the losses this morning as any shift in the investing landscape towards ‘risk-off’ appears to have been dismissed as the Buy-The-F**king-Tomahawk-Missile-Launch-Dip’ers are back in force betting on the success of the administration’s tax reform, or stimulus, or earnings, or hope. However, Gold prices remain elevated leaving some trace of doubt about President Trump’s actions. However, RBC’s head of cross asset strategy, Charlie McElligott, points out that the missile strikes change NONE of the calculus for him… The same way that terror attacks are tragic and scary and initially ‘spook’ people, historically they’ve been proven buying opps. The US strike doesn’t change the recent earnings growth pivot higher (esp in ‘cyclicals’); or the current Crude squeezing higher and its +++ implications for higher “inflation expectations” / “more energy base-effect;” or ‘better’ global growth (China and EU PMIs, while EM too is looking back ‘online,’ with EM equities proving to be a new ‘safe haven’ for $$$ coming-out of ‘rich’ US equities). This was a global ‘call to action’ off the back of the chemical attack, and it has received praise from everybody from Sens. McCain to Pelosi. We (the US) called the Russians before-hand to tell them (and inform their Syrian counterparts as well) what we were going to do—seriously. This was a symbolic …
	Frontrunning: April 7 U.S. fires missiles at Assad airbase; Russia denounces ‘aggression’ (Reuters) Congress Supports the Airstrikes, Debates What Happens Next (WSJ) Trump’s Syria Strike Sends Not-So-Subtle Warning to U.S. Rivals (BBG) Russia Halts Cooperation With U.S. on Syrian Air Operations (WSJ) Syria Says Strike Kills Five, Damages Air Base (WSJ) Oil hits one-month high after U.S. missile strike in Syria (Reuters) China fighter plane spotted on South China Sea island: think tank (Reuters) Senate Expected to Confirm Gorsuch as High Court Justice (WSJ) Traders Are Worried About Chinese Local Government Debt Again (BBG) Jobs Report to Take Pulse of Wage Growth, Participation Rate (WSJ) Nobody Is Saying Anything About How U.S. Earnings Season Will Go (
	Russia To Upgrade Syria Air Defenses, Suspends Airspace Pact With U.S. If Trump wanted to provoke the Kremlin – an odd decision considering all the daily “press coverage” that the Kremlin controlled the president – he has achieved just that: Russia said it will reinforce Syria’s air defences and, as reported previously, is sending a missile carrying warship to the eastern Mediterranean in response to a US cruise missile strikes on a Syrian government airbase. The Russian ministry of defence said in a statement that “to protect key Syrian infrastructure a range of measures will be taken reinforce and improve the effectiveness of the Syrian armed forces air defence.” The announcement came as the Admiral Grigorevich, a cruise missile carrying frigate, passed through the Bosporus en-route to Russia’s Syrian navy base at Tartus. Also on Friday Russia announced it had halted its air safety agreement with the US, meant to avoid “air incidents” with the US over Syria, saying US air strikes had caused “considerable” damage to Moscow-Washington relations. The memorandum, signed in October 2015, was designed to avoid clashes in the crowded airspace over Syria, with each side giving the other warning over planned strikes. The defense ministry also said that six MiG-23 fighter jets were destroyed in the US missile strike on a Syrian airfield in Homs province, but the runway remained intact. The strike on the Shayrat airfield in Syria’s Homs Province destroyed a material storage depot, a training facility, a canteen, six MiG-23 aircraft in repair hangars and a radar station. Two Syrian servicemen are missing as a result of the US attack on an airfield in the country, while four were killed and six were injured extinguishing the flames, Russian Defense Ministry spokesman Maj. Gen. Igor Konashenkov said Friday. “According to the information of the leadership of the Syr …
	Samsung Is Cashing In on Its Chips Korean technology giant Samsung has emerged from a tricky year in good shape, and the good news is set to continue.
	Syria Airstrikes Unlikely to Be a Game Changer for Oil Barring a tension-escalating surprise from Iran or another regional player, the oil market remains balanced between strong global demand and robust U.S. supply.
	Aviva: An Insurance Stock That Could Come to Life Aviva was long known as the European insurer most likely to disappoint. Now the U.K.-based group is showing greatest potential to bring good surprises.
	Rail Week Ending 01 April 2017: March Totals Up 5.5% Year-over-Year Week 13 of 2017 shows same week total rail traffic (from same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. The data this year has big ups and downs but is now trending up.
	Tomahawk maker Raytheon leads premarket gainers after Syrian missile strike Defense and energy stocks jumped in premarket trade Friday, as investors digested news of a U.S. missile strike on a Syrian air base overnight.
	BookWatch: 5 ways to protect yourself from outrageous hospital bills Everything done to you or for you in the hospital will be billed at exorbitant rates, warns Elisabeth Rosenthal.
	Economic Report: U.S. jobs growth slumps to 98,000 jobs in March The U.S. created just 98,000 new jobs in March to mark the smallest gain in almost a year, as hiring cooled off after a strong start in 2017.