• US stock market, economy and companies update (August 07, 2015)

    The consensus heading into the US jobs data was that any figure above +200K would keep the Fed on track to tighten policy in September. Global equities are losing ground after the jobs report, with European indices looking to close at their lows and all three leading US indices seeing modest losses. The DJIA is down 0.31%, the S&P500 is off 0.37% and the Nasdaq is down 0.31%.

    The US yield curve flattened in the wake of the jobs report as expectations for a September rate hike increased, with the 2/10 curve down five basis points to 1.46%. The Fed-funds futures now suggest the odds of a September hike have risen to 56% from 46% before the report. There was some FX volatility following the jobs report, but EUR/USD is about where it was in the European session, trading around 1.0920, while USD/JPY remains at the high end of the 124 handle. Crude is lower, with front-month WTI cents away from breaking below $44.

    The non-farm payrolls total came in slightly below expectations. Employers added 215,000 jobs in July, marking the 58th consecutive month of job gains, the longest stretch on record. Both the June and May figures were revised slightly higher. Unemployment didn't budge from 5.3%, while average hourly earnings rose 0.2% sequentially and 2.1% on an annualized basis, on par with the pace of much of the expansion. The labor-force participation rate was flat, suggesting there remains quite a bit of slack in the labor market.

    Cablevision had followed the other big media and cable stocks lower after Disney on Wednesday kneecapped the space with bearish comments on the outlook for cable subscribers. Today's CVC earnings report was largely in line with expectations, although the firms overall and video-only customer base has shrunk slightly on a y/y basis. CVC had been down 6% on the week as of yesterday's close and is down another 2.5% this morning.

    In other movers, Nvidia is up more than 10% after the firm crushed top- and bottom-line expectations in its second-quarter results and offered strong third-quarter guidance. Micron fell more than 3% after DRAMeXchange reported that contract prices for DDR3 modules fell 15% m/m in July and would fall further in the third quarter. Shares of Cheniere Energy are up 7% this morning after activist investor Carl Icahn took an 8.2% stake in the firm.

    ***Looking Ahead***
    - 13:00 (US) Weekly Baker Hughes Rig Count
    - 15:00 (US) Jun Consumer Credit: $17.0Be v $16.1B prior
    - 21:30 (CN) China July CPI Y/Y: 1.5%e v 1.4% prior
    - 21:30 (CN) China July PPI Y/Y: -5.0%e v -4.8% prior
    - (CN) China July Trade Balance: $54.7Be v $46.5B prior; Exports Y/Y: -1.5%et v +2.8% prior; Imports Y/Y: -8.0%e v -6.1% prior

    ***Economic data***
    - (IE) Ireland July Live Registry Monthly Change: -2.1K v -2.1K prior; Live Registry Level: 343.1K v 345.2K prior
    - (BR) Brazil July FGV Inflation IGP-DI M/M: 0.6% v 0.6%e; Y/Y: 7.4% v 7.5%e
    - (CL) Chile July CPI M/M: 0.4% v 0.4%e; Y/Y: 4.5% v 4.5%e; CPI Ex Food and Energy M/M: 0.1% v 0.3%e
    - (CL) Chile July Trade Balance: $0.0M v $0.4Be; Total Exports: $5.2B v $5.7Be; Total Imports: $5.2B v $5.1Be; Copper Exports: $3.8B v $3.1B prior
    - (BR) Brazil July IBGE Inflation M/M: 0.6% v 0.6%e; Y/Y: 9.6% v 9.5%e
    - (US) July Change in Nonfarm Payrolls: +215K v +225Ke; Change in Private Payrolls: +210K v +212Ke; Change in Manufacturing Payrolls: +15K v +5Ke
    - (US) July Unemployment Rate: 5.3% v 5.3%e; Underemployment Rate: 10.4% v 10.5%e; Change in Household Employment: +101K v -56K prior; Labor Force Participation: 62.6% v 62.6% prior
    - (US) July Average Hourly Earnings M/M: 0.2% v 0.2%e; Y/Y: 2.1% v 2.3%e; Average Weekly Hours: 34.6 v 34.5e
    - (CA) Canada July Net Change in Employment: +6.6K v +5.0Ke; Unemployment Rate: 6.8% v 6.8%e
    - (CA) Canada Jun Building Permits M/M: 14.8% v 5.0%e
    - (MX) Mexico July CPI M/M: 0.2% v 0.2%e; Y/Y: 2.7% v 2.8%e; CPI Core M/M: 0.2% v 0.2%e
    - (CA) Canada July Ivey Purchasing Managers Index: 52.9 v 51.5e

    [I]Contributed by Trade The News[/I]
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