Friday's Brew (Nov 3)

Enjoy your fresh morning coffee with our summary of the market outlook for the day and a medley of important information you should find useful. Stock futures are confused this morning, and indicators point to a mixed open. The 8:30 AM EST October employment report release showed lower than expected job additions, but its impact was offset by sharp revisions higher to the August and September numbers and healthy unemployment data.

The Dow Jones industrial average has declined five days in a row, and the jobs report seemed critical to the trend today, but now looks only moderately positive to markets. Economists surveyed by Bloomberg expected an increase of 125,000 jobs. The economy actually added 92,000 jobs in October, at least until that number is revised significantly higher or lower next month...

OVERSEAS MARKETS

The Japanese market is closed today for a national holiday. In Hong Kong, the Hang Seng Index is up fractionally into record territory. Financial and technology sectors are leading the way today in Asia, driven by earnings reports. Indices in Australia and India are also breaking into record territory today.

In London, the FTSE 100 is down ever so slightly this a.m., while markets in Amsterdam and Switzerland are doing best today, up about a half a percent each. The European Central Bank spooked markets yesterday when it signaled it might continue raising rates.

ECONOMIC DATA & NEWS

The unemployment rate for October came in below the 4.6% anticipated and seen in September, measuring 4.4%. Unemployment increased within construction and manufacturing, as America's housing and auto sectors cut capacity.

October non-farm payroll, which was expected to grow by 125,000 jobs, actually increased by 92,000, but sharp revisions higher to the August and September numbers left traders confused. Also today, the Institute for Supply Management will release its non-manufacturing index, a better barometer of the health of the service sector driven American economy than manufacturing numbers.

COMMODITY MARKETS & DATA

Geopolitical concerns come to the forefront today, with Iran testing long range missiles during exercises in the Persian Gulf, just days after the U.S. finished exercises of its own there. Russia and China are opposing the kind of sanctions imposed on North Korea. The two Asian empires hope to keep sanctions focused on Iran's uranium enrichment program and heavy water reactor. Meanwhile, Russia says it will follow through with December delivery of anti-aircraft missile systems to Iran. Crude oil is up $0.47 to $58.35 in early trading.

Gold is seeing some profit-taking today, down about $0.80, while natural gas leads all commodities today, up approximately 3%.

STOCK NEWS

Reporting earnings on Friday are Duke Energy and Medco Health Solutions. Whole Foods (WFMI) is down roughly 21% in pre-market trading, after forecasting same-store sales growth of 6-8% for fiscal year '07, below the double-digit levels investors have gotten use to. Prudential upgraded Electronic Arts (ERTS) to neutral from underweight, after ERTS posted quarterly EPS of $0.07, compared to analysts' expectations for $0.02. ERTS shares were up roughly 9% in pre-market trading. We hope you enjoyed "Today's Morning Coffee" and wish you a good day trading. See the disclosure at Wall Street Greek.