Stock markets have bounced back a bit following the release of mixed US nonfarm payrolls. Although the 209K print was below street expectations, it was still the sixth month in a row above 200K and June was revised upward so the employment trend remains strong. Meanwhile, US hourly earnings and Core PCE inflation were in line or up slightly so inflation pressures haven’t gone away. FOMC member and Philadelphia Fed President Charles Plosser was out speaking this morning and reiterated his objection to the part of the FOMC statement on how long rates may remain low, indicating that hawks are becoming more vocal. In reaction to the payrolls news, indices have staged trading bounced but both the Dow and the S&P remain well short of yesterday’s closes and their recent breakdown points. USD has backed off a bit enabling NZD (oversold on the RSI) and SEK (on positive Swedish manufacturing PMI) to climb back up off the mat but GBP and CAD continue to underperform with Sterling impacted by a soft UK manufacturing PMI report. Gold is taking advantage of USD weakness gaining over $10.00 but still needs to retake $1,300 to indicate this is more than a technical bounce. The trading day is just getting started and there is still a lot of news to come. Manufacturing PMI reports are still due for the US and Canada with traders looking for more signs of how well spring momentum has carried into the summer. We may also see action in selected stocks, particularly Tesla Motors (good earnings but production guidance impacted by retooling) and LinkedIn (blowout earnings and guidance) following last night’s earnings reports. Corporate News Tesla Motors $0.11 vs street $0.04, sales $857M vs street $823M, next Q deliveries basically flat near 9,000 due to a two-week assembly line transition shutdown or would have been 11,000. Expects 35,000 deliveries for full year. LinkedIn $0.51 vs street $0.39, sales $534M vs street $511M, guides next Q sales to $543-$547M vs street $540M Chevron $2.98 vs street $2.64 Canadian Oil Sands $0.36 vs street $0.28, sales $900M vs street $796M Economic News Economic reports released overnight and this morning include: US nonfarm payrolls 209K vs street 230K previous revised up to 298K from 288K US private payrolls 198K vs street 230K previous revised up to 270K from 262K US unemployment rate 6.2% vs street 6.1% US hourly earnings 2.0% vs street 2.2% and previous 1.9% US personal income 0.4% as expected US personal spending 0.4% as expected US PCE core inflation 1.5% vs street 1.4% China official PMI 51.7 vs street 51.4 China HSBC PMI 51.7 vs street 52.0 Australia PMI 50.7 vs previous 48.9 South Korea PMI 49.3 vs previous 48.4 Japan PMI 50.5 vs previous 50.8 India PMI 53.0 vs previous 51.5 UK PMI 55.4 vs street 57.2 France PMI 47.8 vs street 47.6 Germany PMI 52.4 vs street 52.5 Spain PMI 53.9 vs street 54.5 Italy PMI 51.9 vs street 52.5 Sweden PMI 55.2 vs street 54.9 Norway PMI 50.6 vs street 50.0 Russia PMI 51.0 vs street 48.9 Greece PMI 48.7 vs previous 49.4 Eurozone PMI 51.8 vs street 51.9 South Africa PMI 45.9 vs street 45.0 Australia house prices 1.6% vs previous 1.4% Australia producer prices 2.3% vs previous 2.5% Australia commodity index (12.1%) vs previous (9.6%) Norway unemployment rate 3.0% as expected vs previous 2.7% Economic reports due later today include: 9:00 am EDT Brazil PMI previous 48.7 9:30 am EDT Canada PMI previous 53.5 9:45 am EDT US Markit PMI street 56.5 10:00 am EDT US ISM PMI street 56.0 10:30 am EDT Mexico PMI previous 51.8 9:55 am EDT US consumer confidence street 81.7 10:00 am EDT US construction spending street 0.5%