MARKET COMMENTS Monday, June 10th, 2013

June E-mini S&Ps (ESM13 +0.35%) this morning are up +6.25 points (+0.38%). The S&P 500 index on Friday closed sharply higher as stronger-than-expected growth in U.S. payrolls showed the economy is growing, but not fast enough for the Fed to start cutting stimulus. May non-farm payrolls rose +175,000, stronger than expectations of +163,000, but the May unemployment rate unexpectedly ticked up +0.1 to 7.6%, higher than expectations of unchanged at 7.5%. Closes: S&P 500 +1.28%, Dow Jones +1.38%, Nasdaq 100 +1.38%.
September 10-year T-notes (ZNU13 -0.05%) this morning are down -3.5 ticks. Sep 10-year T-note futures prices Friday closed lower. The main bearish factor was the stronger-than-expected U.S. May non-farm payrolls report (+175,000 vs. expectations of +163,000), which bolstered speculation the Fed’s next policy move will be to taper QE3. Another negative was reduced safe-haven demand for Treasuries after the stock market surged. Closes: TYU3 -22.5, FVU3 -12.75.

The dollar index (DXY00 +0.23%)this morning is up +0.160 (+0.20%). EUR/USD (^EURUSD) is down -0.0001 (-0.01%) and USD/JPY (^USDJPY) is up +1.26 (+1.29%). The dollar index on Friday closed higher after the larger-than-expected increase in U.S. May non-farm payrolls sustained speculation the Fed will move toward reducing its asset purchases. USD/JPY tumbled to a 2-month low after Japanese Finance Minister Taro said he had no immediate intention to weaken the currency, although USD/JPY recovered and closed higher as strength in the stock market reduced the safe-haven demand for the yen. Closes: Dollar index +0.132 (+0.16%), EUR/USD -0.00282 (-0.21%), USD/JPY +0.584 (+0.60%).
July WTI crude oil (CLN13 -0.52%) this morning is down -41 cents a barrel (-0.43%) and July gasoline (RBN13 -0.40%) is down -0.0077 (-0.27%). July crude oil and gasoline Friday closed higher. July crude posted a 1-week high and July gasoline climbed to a 2-week high Friday after the better-than-expected U.S. May non-farm payrolls sent stocks soaring and bolstered speculation that U.S. energy demand will increase. Another positive for crude was the unexpected +1.8% m/m increase in German Apr industrial production, the most in 13 months and a sign of increased energy consumption in Europe’s largest economy. Closes: CLN3 +1.27 (+1.34%), RBN3 +0.0206 (+0.72%).