Benzinga Market Primer, Friday July 6: Non-Farm Payrolls Edition

U.S. equity futures are lower this morning ahead of the monthly Non-Farm Payrolls report. Consensus economist expectations are for a reading of 90,000, with the range of estimates from 35,000 to 165,000. The wide range of estimates is telling that there is uncertainty remaining around the labor market. May's report was dismal, showing that the economy only added 69,000 jobs and that in April, the economy only added 77,000 jobs. Benzinga is expecting a beat on the headline number due to a slew of recently strong data.

In other news:

German May Industrial Output grew 1.6 percent month-over-month as compared to a revised 2.1 percent decline in April.

Secretary of State Clinton says that China and Russia should pay for supporting the Assad regime in Syria.

Spanish Industrial Production in June contracted 6.1 percent, much better than a predicted 8.5 percent contraction and the previous reading of an 8.3 percent contraction.

Here are 10 reasons why China's economy is in much more dire straights than previously thought.

U.S. equity futures are lower this morning ahead of the Non-Farm Payrolls report. S&P 500 futures fell 2 points to 1367.58. Dow futures fell as well and tech heavy NASDAQ futures were down 3.75 points. Asian shares fell overnight and notable weakness was seen in Korean equities. The Korean Kospi Index fell 0.92 percent, dragging lower other indices such as the Nikkei and the Hang Seng. European shares are also lower this morning, as Spanish fears resurface for the second day in a row. The Spanish Ibex Index fell 1.5 percent.

The benchmark Spanish 10-year yield has risen for a second day in a row after four days of declines. The yield was just below 7 percent at 6.992 percent. Italian 10-year yields were back above 6 percent at 6.037 percent. Spanish bond yields have been widening over the last two trading sessions on fears that ESM seniority would not be removed, rendering it useless to effectively purchase bonds and keep yields low.

Commodities are lower this morning across the board. WTI crude fell 1.75 percent in early New York trade to $85.69 per barrel. Brent crude fell in tandem by 1.56 percent to $99.13 per barrel. Brent crude prices fell back below $100 per barrel after crossing it on Thursday for the first time since mid-June. Metal futures also fell, with copper futures falling nearly 1 percent to $346.75 per pound. Gold fell 1.0 percent to $1,593.30 per ounce and silver fell to 27.425 per ounce..

The dollar continued its strength this morning, after rising markedly on Thursday. The European Central Bank cutting rates sent the EUR/USD lower by over 1 percent. The pair was again lower this morning at 1.2378. The dollar was weaker against all major pairs except for the Great Britain pound in early U.S. trading. The New Zealand dollar was the biggest loser, falling 0.35 percent against the U.S. dollar to 0.8008.

The economic calendar is empty aside from the Non-Farm Payrolls report. EIA gasoline data is due out at 10:30 am, but it is likely that traders will be heading to the beach by that time.

Good trading and good luck. Have a happy Independence Day in the U.S.