Stock index futures are showing a modest bounce after the June jobs report indicated a loss of 125,000 jobs in the month. Most of the losses were in temporary government jobs, as the private sector apparently added 83,000 jobs in the month.
The unemployment rate actually dropped to 9.5%. Average hourly earnings were down 0.1%. As the market pays more attention to the data as I write this, the futures have turned negative. 650,000 people walked away from the job market. This accounts for the drop in the headline unemployment rate. Overall, the report is now being viewed as weaker than the headline numbers.
Traders will likely re-assess the numbers throughout the day.
On a technical side, if the S&P 500 falls below 1000 any time soon, look out below. That will have a psychologically devastating effect on investors.
Scott Cole
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