The Jobs Report: Market Happenings For Friday, November 02, 2012

Premarket, futures are up on a good Jobs report. Gainers this morning include SBUX (+8.97%), VRSN, ROST, DOV and TRIP while losers include FOSL (-6.64%), FLR, SNDK, MU and APC.

The Market

Todays Jobs Report shpws american job creation improved in October adding 171,000 new jobs but the unemployment rate moved higher to 7.9 percent. Economists had been expecting the report to show a net of 125,000 new jobs and a steadying of the unemployment rate at 7.8 percent. Most of the job creation came in the services sector, with a gain of 150,000, while government employment rolls saw a collective decrease of 13,000. A broader measure of unemployment that includes discouraged workers and those employed part-time who would rather work full-time ticked lower to 14.6 percent.

The labor force participation rate, a key metric that measures those working and looking for jobs, edged higher to 63.8 percent after wallowing around 31-year lows for the past several months.

Unemployment for blacks showed the highest increase, surging to 14.3 percent from 13.4 percent.

The average duration of unemployment climbed to a 2012 high of 40.2 weeks.

Chevron (CVX), the nation’s second-largest oil company reported that it earned $5.25 billion, or $2.69 per share, in the July-through-September quarter. That compares with net income of $7.83 billion, or $3.92 per share, in the year-ago quarter. Revenue fell to $55.66 billion from $61.26 billion. Analysts, on average, predicted earnings of $2.83 per share on revenue of $67 billion. Income equates to a 33% decline.

European stocks are mixed in afternoon trade and ASian markets ended higher.

Earnings Reports

Earnings reports (estimates): CVX-Chevron ($2.83), HES-Hess (1.19), ED-Consolidated Edison (1.38), PPl-PPL Corp (0.67), MHP-McGraw Hill (1.31), RL-Ralph Lauren (2.15), BEAM-Beam Inc (0.55), NI-Nisource (0.04), VMC-Vulcan Materials (0.16), PNW-Pinnacle West (2.24), XEC-Cimarex Energy (0.95), LNT-Alliant Energy (1.30), NRG-NRG Energy (0.44), BPL-Buckeye Partners (0.73), NVE-NV Energy (0.88), IT-Gartner (0.35), VHI-Valhi (na), IEP-Icahn Enterprise (na), OZM-Och-Zill (0.13), DRC-Dresser-Rand (0.68), HUN-Huntsman (0.51), WTR-Aqua America (0.35), SEE-Sealed Air (0.31), USM-US Cellular (0.61), MSG-Madison Square (0.20).

Financial Calendar

0830 ET Oct non-farm payrolls expected +125,000, Sep +114,000. Oct private payrolls expected +124,000, Sep +104,000. Oct mfg payrolls expected -3,000, Sep -16,000. Oct unemployment rate expected +0.1 to 7.9%, Sep down -0.3 to 7.8%. Oct household employment, Sep +873,000.

0830 ET Oct average hourly earnings expected +0.2% m/m and +1.7% y/y, Sep +0.3% m/m and +1.8% y/y. Oct average weekly hours expected unch at 34.5 hours, Sep 34.5.

0945 ET Oct New York ISM index, Sep 52.9.

1000 ET Sep factory orders expected +4.6% m/m, Aug -5.2% m/m.

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