This morning, the S&P 500 Index e-mini futures are tumbling lower by 15.00 points to 1336.75 per contract. The catalyst for the decline is the Labor Department’s weak non-farm payroll report. Yesterday, the ADP payroll report was much higher than expected and many traders and investors were looking for huge job growth, however, the non-farm payroll today posted just 18,000 jobs created. The whisper number expectations were for nearly 200,000 new jobs on Wall Street. Today’s job report was a complete disappointment, especially since the unemployment rate increased to 9.2 percent.
Europe continues to have more than it’s fair share of problems. Spanish, and Italian debt yields are signaling more bailouts will be needed. Who is bailing these countries out? Oh, it is printed money created by central banks that are bailing these countries out. Portugal, and Ireland, may need another bailout just like Greece in the near term future. Keep a close eye on Belgium, this country could be the front runner for another EU bailout.
WTI oil is trading lower by $1.97 to $96.73 per barrel. Crude has sold off sharply since the poor job report was released at 8:30 pm EST. Gold, and silver are climbing higher this morning. The European debt crisis is certainly a positive for the precious metals as investors lose faith in fiat money. The SPDR Gold Shares (NYSE:GLD) are trading higher this morning by 0.92 cents to $150.10 a share. The GLD has now rallied higher by $6.00 since July 1, 2011.
The Asian markets were mostly higher last night. The one major index that traded lower was the Sensex Index(India). The Sensex Index closed lower by 1.15 percent. Traders can watch for weakness in many of the Indian ADR’s s such as Tata Motors LTD (NYSE:TTM), and the India Fund (NYSE:IFN).