This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 14.50 points to 1376.50 per contract. The rally in the stock futures comes as Spanish bond yields on the 2-year notes are falling sharply lower. All of the European markets are rallying higher on this news. The U.S. Dollar Index futures (DX-U2) are also trading lower by 0.41 cents to $83.02 per contract. Traders should watch for the leading base metal stocks to have strength today if the U.S. Dollar continues to decline. Leading equities such as Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), Rio Tinto plc (ADR) (NYSE:RIO), and Vale SA (ADR) (NYSE:VALE) will all benefit from a weaker U.S. Dollar. Traders can follow the U.S. Dollar Index by watching the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).
Just a few minutes ago the U.S. Labor Department released the non-farm payroll report for July. The report was better than analysts expected showing that 163,000 new jobs were created last month. The markets are rallying on the news, however, the one wild card is that QE-3 is certainly less likely after this job number.