Fewer Jobs Were Lost

Good morning. Investors are reacting to the jobs report where nonfarm payrolls fell by 51K in July (consenses expectations were at 70K) while the unemployment rate increased to 5.7% (a four-year high and above the 5.6% consensus expectation). Since December, 463K jobs have been lost.

Although the jobs report is today's big story (and premarket futures gained following the report's release), there was some disappointment of a big loss at General Motors (GM) which saw revenues drop 18% from last year. In addition, Deutsche Bank had its counterparty credit rating cut this morning. At 10:AM we have reports on Construction Spending and the ISM Manufacturing Index.

Premarket gainers: THOR, BYD, SWIM, USMO, SGMS, ATRO, IR, IDCC, GXDX, HSTX, VDSI, SMG, SCOR, CHRD, PAR, CNXT, VPRT, VSEC, CSTR, TMA, EXTR, TNP, ANR, & GPRO.

Premarket losers: ELN, BIIB, TOMO, GM, F, BOOM, SGP, EHTH, RNWK, JAVA, VCLK, OSK, STO, IMMR, MRNA, HNSN, GFI, CTSH, VRTX, & WINN.

A number of traders are now putting the 1300 level in the S&P 500 back on their trading radar in any upside move as a key technical level. A break above that area (and reclamation of the 50 day moving average) would set up a move back up to the upper end of the downtrend channel we've been in for some time now:

Finally, an interesting factoid from Bloomberg this morning - all of the 23 developed nations in the MSCI World Index except for Canada have experienced bear-market plunges of 20% or more since September. Last week Brazil became the 23rd out of 25 developing countries in the MSCI Emerging Markets Index to enter a bear market. Only Jordan and Morocco have avoided the bear so far.

Let's make this a great month!