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What Non-Farm Payrolls have in store for us?

|Includes: DJ, Europe 2001 HOLDRs (EKH), ERO, GBB, JYN, SPY
Tomorrow’s Non-Farm Payrolls generally have plenty of sway on the market. Let’s assess the situation of whether or not the NFP numbers have the power to beat the expectations of 145,000.
 
Pro’s
1)    ADP Employment Rose by 93,000 from previous month.
2)    Challenger Job cuts is at the best level in a year and a half.
3)    There is Zero Strike Activity.
4)    Unemployment Claims Dropped to 436k from 450k four weeks ago.
5)    Continuing Claims dropped to 4270k from 4500k four week ago.
6)    Consumer Sentiment is highest since June at 71.4.
7)    Retailers expect to add 180,000 temporary jobs for Holiday Season.
 
Con’s
1)    Manufacturing PMI’s Employment component dipped to 57.5 from 57.7
2)    Unit Labor Cost dropped 0.1% in Third Quarter of the year
3)    Monster Employment figure weakened to 134 from 136 in November.
 
With the following in mind we expect relatively strong numbers from the United States. Nonetheless, trading on such premise will be complicated as stronger data could either act as risk appetite or pro Dollar side. With the United States Dollar being temporary overbought on fundamental basis, taking positions before the event will deem to be not prudent.


Disclosure: No Positions