Stock futures turned mixed in pre-market action Friday, following a positive November payrolls report and amid edgy international trade ahead of Sunday’s constitutional referendum vote in Italy.
The Dow Jones and S&P 500 futures each rose a fraction above fair value. The Nasdaq 100 futures traded with narrow losses.
For the week, NASDAQ heads into Friday down 2.7% and the S&P 500 is off 1% - both tracking toward their first decline in three weeks, the Dow is up 0.2% and the Russell 2000 is down 2.5% vs. last Friday’s close.
U.S. non-farm employer’s added 178,000 new workers during November, the Labor Department reported, up sharply from 161,000 new hires in October and outpacing estimates for 170,000 added jobs. Private companies did the bulk of the hiring, adding 156,000 employees, vs. expectations for hiring to increase to 155,000.
The unemployment rate dropped to 4.6%, down from 4.9%, easily besting consensus views for no change. The work week and participation rates held steady.
Traders should be looking at the Italian referendum this Sunday for big opportunities in the Euro futures market. We should see strong volatility no matter which way the vote swings on Sunday. This gives traders a great opportunity to purchase calls and puts to play the strong swing Sunday and Monday. Look for cheap March calls and puts today. One way or another you should be able to catch a nice trade and be out by early next week.
Series 3 Licensed
Senior Market Strategist
Tim started his career trading with a group of technical traders trading a commodities fund for five years. After that he started trading the 5-year and 10-year Treasury note futures at the Chicago Board of Trade. Since then he has become an all-around technical and fundamental trader, and uses his prior knowledge to help others trading the futures markets as a commodities broker.