August 7, 2009, 7:00 am … The Standar…
August 7, 2009, 7:00 am … The Standard & Poor’s 500 index futures are down 3.10 to 991.80, as European markets dropped and Asian markets were mixed ahead of the reading on jobs in the world’s largest economy. The Labor Department’s report is expected to show job losses moderated in July as the worst recession since World War II eases. The slowdown in job cuts comes as companies are likely done with their largest cost-cutting initiatives that have helped offset declining sales and revenues. Look for job losses slowing in July to 342,000, as employers dropped 491,000 jobs in June. The number whatever it is will be bogus, since it does not reflect the continuing contraction of small businesses and trouble of paying for federal taxes. … The unemployment rate is expected to rise to 9.6 percent from 9.5 percent in June. It is widely anticipated the unemployment rate, which tends to lag a recovery in the economy, will eventually eclipse 10 percent. Employers typically do not start adding jobs until they are fully confident an economic recovery will last — remains the noise. The report is due out at 8:30 a.m. EDT. … Oil prices fell to near $71 a barrel Friday as investors looked to U.S. monthly employment figures due later in the day for signs the economy may be recovering. … Benchmark crude for September delivery was down 70 cents to $71.24 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, the contract lost 3 cents to settle at $71.94. Indeed, renewed investor HOPES of an early recovery in the global economy have led to a sharp rebound in equities and oil prices. Oil prices have held above $71 for the last few days despite an Energy Department report this week that showed crude supplies continue to rise, a sign demand remains weak. Weak oil market fundamentals have been discounted. Based on substantial overhangs of crude and middle distillates in both on-land stocks and floating storage, crude should be selling at $25 per barrel. … Maintain resistance of S&P 500 index at 1114.28, while changing support back to 944.89 after goggle tab test at 992.18 was compromised. Trading both sides and don’t wait too long to take profits or cut losses. Consider a downside bias when making trading decisions.