October Payrolls Fall 240,000

Good morning. October payrolls fell 240,000 and the unemployment rate rose from 6.1% to 6.5%. (September's payroll number was also significantly revised to -284K from -159K).

In turn, premarket trading has been volatile, but currently suggest a positive start in spite of the jobs report and more disappointing earnings announcements. There's hope that the bad news is already baked in, but we'll see if that sentiment holds past the first hour of trading.

Premarket gainers: NVDA, OSIP, AIG, SWKS, ABK, FSYS, LFG, EGLE, VTIV, FNF, TRLG, PCLN, ARMH, PEG, GOLD, CSIQ, PRGN, MIDD, FLR, SAPE, EBS, TBSI, SOLR, QLTY, WPRT, TKC, & CHU.

Premarket losers: YHOO, WFC, GNW, INTG, SOMH, SAH, EFUT, UEIC, PODD, LVS, MTZ, ARAY, STV, HOV, ETFC, SFI, DIS, & WB.

At 10:AM we have the pending home sales index and wholesale trade. Then at 12PM Fed Dennis Lockhart is scheduled to speak about the economy and at 3:PM we have the consumer credit report.

The key for today is simply to shake off the bad jobs report and put in a higher low after the past two days. Premarket futures suggest that is a clear possibility, although I'd temper any excitement over early strength. I suspect there's a fair amount of overhead supply (i.e. sell interest) that we'll see come in but we won't know for sure until trading gets fully underway. At a minimum, 900 level in the S&P must be held in today's session.

Have a great Friday!