08Mar2019 Pre-Market Commentary: Wall Street Futures Hit A Brick Wall On Paltry Jobs Report, DOW Futures Down 200 Points, Gold Rises To 1298

Here is the current market situation from CNN Money

European markets are lower today with shares in London off the most. The FTSE 100 is down 0.96% while Germany’s DAX is off 0.72% and France’s CAC 40 is lower by 0.67%.

U.S. economy creates paltry 20,000 jobs in February

WASHINGTON, March 8 – U.S. job growth almost stalled in February, with the economy creating only 20,000 jobs amid a contraction in payrolls in construction and several other sectors, which could raise concerns about a sharp slowdown in economic activity.

Ghosn’s defense team to monitor calls, surveillance footage while he awaits trial

No internet, no email and surveillance cameras to monitor his comings and goings.

Growth fears, China equity plunge haunts world stocks

Deepening fears for the health of the global economy pushed world stocks to three week lows on Friday after China exports contracted by a fifth, sending shares in some of the country’s key indexes more than 4 percent lower.

Stock futures fall on global growth concerns; jobs data awaited

U.S. stock futures slipped on Friday on global growth worries after Chinese data showed exports tumbled the most in three years, while investors turned their focus to domestic monthly employment report.

Exclusive: India investigating Philip Morris, Godfrey Phillips: source

India’s main financial crime-fighting agency is investigating Philip Morris International Inc and its Indian partner Godfrey Phillips for alleged violation of the country’s laws, a senior directorate source told Reuters on Friday.

Marriott CEO apologizes for data breach, unsure if China responsible

Marriott International Inc Chief Executive Arne Sorenson apologized on Thursday before a U.S. Senate panel for a massive data breach involving up to 383 million guests in its Starwood hotels reservation system and vowed to protect against future attacks.

Exclusive: U.S. EPA aims to curb biofuel credit speculation by blocking outsiders

The Environmental Protection Agency will attempt to stamp out speculation in the U.S. biofuel credit market by barring trading by non-industry players, publicizing large positions, and improving price transparency, a source familiar with the agency’s proposals told Reuters on Thursday.

ECB pushes out rate hike, offers cheap cash to banks

The European Central Bank changed tack on its tightening plan on Thursday, pushing out the timing of its first post-crisis rate hike until 2020 at the earliest and offering banks a new round of cheap loans to help revive the euro zone economy.

ECB’s new bank loan scheme won’t cover mortgages: Vasiliauskas

Euro zone banks will not be able to use a new longer-term lending facility from the European Central Bank to extend mortgages, Lithuanian central bank chief Vitas Vasiliauskas said on Friday.

February Payrolls Shocker: US Adds Only 20K Jobs, As Wage Growth Soars

Just as we warned moments ago when we cautioned that the whisper number is for a sharply lower print than the expected 180K print, moments ago the BLS confirmed that in February the US labor market hit a brick wall, or perhaps a blizzard, when it added just 20K jobs in February…

Watch For A Soft Payrolls Report: Here Is What Wall Street Expects

Ahead of today’s payrolls report, where the whisper number is for a weaker print than the 180K consensus, this is what most sellside desks expect the BLS will report at 830am today:

Natwest 235K

Jefferies 215K

SocGen 215K

BoFAML 210K

Scotia 210K

Barx 200K

RBC 200K

DB 195K

TD 190K

Citi 185K

HSBC 185K

UBS 181K

Daiwa 180K

BNP 175K

C Suisse 175K

JPM 175K

Mizuho 175K

BMO 170K

Nomura 170K

WF 160K

Goldman 150K

MS 141K

Dealer Median: 180K

Meanwhile, as we noted last night, the risk in today’s jobs report is decidedly to the downside, with consensus expecting a sharp drop in payrolls to 180k (12-month average: 234k) from 304K in January, with the February jobs drop due to more seasonal temperatures weighing on weather-sensitive industries.

Specifically, Goldman is bracing for a big miss on the headline jobs print, estimating that nonfarm payrolls increased 150k in February, 30k below consensus and the slowest pace in five months. Goldman believes the trend in job growth has likely slowed from the 232k average pace of the last six months, and expects a drag of at least 40k from above-average snowfall during the February survey week. The February seasonal factors have also evolved unfavorably in recent years—perhaps reflecting the unusually mild weather of recent Februaries. If so, this would also restrain payroll growth in tomorrow’s report

Ironically, survey quirks may contribute to firmer wage growth, which could tick up to a pace last seen in 2009.

For those who missed our full preview yesterday, here again is what to expect from the BLS in 10 minutes courtesy of RanSquawk:

Non-far …

China’s Foreign Minister Urges Huawei To “Take Up Legal Weapons” Against The US

As Huawei gears up for what looks to be a protracted legal battle with the US government (a battle where the odds are stacked against it, as CNBC’s Jim Cramer pointed out yesterday), Chinese Foreign Minister Wang Yi, who is Beijing’s top diplomat, became the most senior government official to weigh in on the lawsuit when he responded to questions from journalists during a press scrum on the sidelines of China’s National Party Congress on Friday.

Reiterating Beijing’s line that the US’s actions against Huawei and CFO Meng Wanzhou are tantamount to “deliberate political suppression”, Wang went on to characterize Huawei’s lawsuit as an act of social justice, encouraging the company to “take up legal weapons to safeguard their rights & interests and not be silent lambs,” per CNN.

Hinting that Beijing sees the US’s struggle against Huawei through the lens of a broader conflict, Wang said “we must protect not only a company’s rights and interests, but a country and a nation’s legitimate rights of development.”

Goldilocks Is Over: Global Stocks Tumble On Fresh Growth Fears, China Crash

Just days after Goldman warned that the Goldilocks rally is over, a selloff swept across world markets with global stocks set for their biggest weekly drop since December, after a plunge in Chinese stocks set the tone for global markets on Friday, with equities in Europe sliding alongside U.S. futures amid growing concerns about the state of US-China trade negotiations and global growth following yesterday’s ECB shocking GDP downgrade. The yen climbed with gold as investors once again scrambled to buy safe havens.

Rail Week Ending 02 March 2019: Now In Contraction Year-to-Date

Written by Steven Hansen

Week 9 of 2019 shows same week total rail traffic (from same week one year ago) contracted according to the Association of American Railroads (AAR) traffic data. The economically intuitive sectors rolling averages remain in contraction.

Capitol Report: Carter said to be willing to help Trump with North Korea | Kelly says full border wall would be ‘waste of money’

Former President Jimmy Carter is willing to travel to North Korea to meet with Kim Jong Un on behalf of President Donald Trump, a Democratic congressman told CNN.

Economic Report: Housing starts rebound in January as builders bet big on houses, not apartments

Home builders broke ground on more properties and applied for more permits, welcome news for the housing market and the economy.

Market Extra: The Dow is on the verge of a bullish golden cross, but stock-market analysts aren’t exactly cheering

It should be time for celebration on Wall Street. A bullish golden cross is on the verge of materializing in the 122-year-old Dow Jones Industrial Average, coming after an anxiety-provoking dip more than two months ago. But some analysts are worried. Here’s why.