Market Braces for June Jobs Report

There is slightly less than an hour to go before the important June Non-Farm Payrolls (NFP) report. Sentiment into the report is very weak, but data into the report has also been very weak.

Economists on average are looking for a loss of 130,000 jobs on the month and an unemployment rate of 9.8%. This job loss estimate continues to ratchet higher into the report, with yesterday the consensus standing at just 125,000 job losses.

The high estimate is a gain of 50,000 jobs, while the low estimate is a loss of 200,000 jobs.

In May, the U.S. economy added 431,000 jobs, but 411,000 of those jobs came from hiring for the U.S. census.

Some think the market could immediately see a relief rally with a number less than 150,000 jobs lost.

Stock futures are pointing flat to slightly higher ahead of the report.

Traders will look for trades in stocks, bonds, the dollar, and oil based on this important number. Some ETFs to watch for quick action will include: SPDRs (NYSE: SPY), UltraShort 20+ Year Treasury ProShares (NYSE: TBT), PowerShares DB US Dollar Index Bullish (NYSE: UUP), and United States Oil (NYSE: USO), among others.

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