Jobs Report Preview
What’s in Today’s Report:
- Jobs Report Preview
Futures are moderately lower following a disappointing night of tech earnings and more hot inflation data.
AAPL, AMZN, and GOOGL all reported earnings overnight and the results underwhelmed. Each stock is down between 2% and 5% pre-market.
Economically, EU PPI rose 1.1% vs. (E) -0.7% and became the third inflation number this week to hint at a rebound.
Focus today will be on the Employment Situation Report and expectations are as follows: Job Adds 185K, UE Rate 3.6%, Wages 0.3% m/m, 4.5% y/y). Financial media focus will be on the headline job adds number but thanks to Powell’s less hawkish speech it’ll take a big number (300k or more) to be “Too Hot.” Instead, focus on wages as they are directly related to services inflation, which remains sticky. If wages are strong, that’ll be a negative. The other notable economic report today is the ISM Services Index (E: 49.6) and markets will want to see stability in the data (no not worse than expectations).