Morning Update: Stocks Point to a Lower Open After Payroll Data

First Look

Major indices are relatively unchanged before the open Friday. Tensions are on the rise between the U.K. and Iran after the British Royal Marines seized an Iranian supertanker passing through the Strait of Gibraltar early Thursday morning. With the help of Gibraltarian police, the supertanker was boarded and prevented from transporting oil to Syria, which is a violation of sanctions. Iran called the British ambassador to the Foreign Ministry in Tehran, calling the actions illegal. Chinese state media reported that trade negotiations could “go backward again” if the U.S. does not remove all tariffs currently in place on Chinese goods, which the country views as a pre-condition to advancing trade talks. The monthly jobs report showed the economy adding 224,000 non-farm jobs in June, beating estimates for 160,000. The unemployment rate rose to 3.7% compared to expectations of 3.6%. Wages increased by 3.1%. The Dow Jones is down -0.15%, the S&P 500 is down -0.18%, the Nasdaq is down -0.2%.

Today's market outlook is Neutral

It is a scientific fact that your body will not absorb cholesterol if you take it from another person's plate.
Dave Barry

Stocks on the Move

Diamondback Energy Inc (FANG), Carnival Corp (CCL) and Kellogg Company (K) are moving higher this morning, while QUALCOMM, Inc. (QCOM), Freeport-McMoRan Inc (FCX) and Kraft Heinz Co (KHC) are headed lower. John Wood Group PLC (WDGJF) was upgraded by analysts this morning, while OMNOVA Solutions Inc. (OMN), and Canopy Growth Corp (CGC) were downgraded.

International Markets

Stocks in Asia are mixed. The Australia ASX All Ordinaries is up 0.45%, the Nikkei 225 is up 0.2%, the Shanghai SE Composite Index is up 0.19% the Hang Seng is down -0.07% and the Mumbai Sensex is down -0.99%. Stocks in Europe are down. The DAX is down -0.34%, the FTSE 100 is down -0.33%, the CAC 40 is down -0.31% and the Euro Stoxx 50 is down -0.24%.

Futures and Currencies

Energy futures are mixed today. The price for West Texas Intermediate crude oil is down -0.47 at 56.87 per barrel. Brent crude is up 0.27 at 63.57 per barrel. Natural Gas is up 0.03 at 2.32. Precious metals are down this morning. Gold is down -3.93 at 1412.15 per ounce. Platinum is down -1.64 at 833.21 while silver is down -0.08 at 15.26. The dollar is up compared to the major currencies today. The greenback is up against the euro, up against the Yen and up against the Pound.

Put/Call Ratio

On Wednesday, 647,327 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 414,050 put contracts. The single-session put/call was 0.64 while the 20-day moving average is now at 0.62.

Earnings Expected Today

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Today's Economic Calendar

What's Happening Period Release Time
Nonfarm Payrolls Jun 08:30
Avg. Hourly Earnings Jun 08:30
Unemployment Rate Jun 08:30
Average Workweek Jun 08:30
EIA Natural Gas Inventories 06/29 10:30

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