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Pre-Market Primer: US Job Market Kicks Into Higher Gear

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The country gained 163,000 jobs. Time to pop the cork on that champagne?

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MINYANVILLE ORIGINAL Stocks are set for a day of gains after the the July jobs numbers for the US blew past expectations.

Non-farm payrolls rose by 163,000, beating expectations of 100,000. Government and construction were the only two sectors to lose workers last month, losing 9,000 and 1,000 workers, respectively. The leisure and hospitality and manufacturing sectors gained the most.

The unemployment rate rose to 8.3% despite a slight drop in the labor market participation rate.

Stock futures rose on the news. Dow (^DJI) futures rose 0.75% to 12,927.00, S&P 500 (SPY) futures gained 0.92% to 1,374.40, and Nasdaq (^IXIC) futures surged 1.08% to 2,646.75. US crude oil futures also rose with WTI crude contracts gaining 1.14% to $88.12/barrel.

European stocks rallied today. A report showed that retail sales in the eurozone rose for the second straight month in June. The pace of sales growth slowed to 0.1% from 0.8% in May, but this figure came in above economists' estimates.

Spain's 10-year borrowing costs fell 15 basis points today to 7.01%. The lower end of the yield curve, which the ECB announced yesterday it will try to push down, fell more dramatically. The yield on Spain's 2-year notes dropped by 72 basis points to 4.11% today. The Italian 2-year note fell by 22 basis points to 6.09%.

Knight Capital (KCG) shares continued to decline by another 7% after a 63% drop yesterday following an algorithm error that resulted in millions of shares being sold erroneously. The trading company is on the hook for more than its total market capitalization, and desperately seeking a buyer or an emergency loan.

LinkedIn (LNKD) shares jumped 9.08% in pre-market hours after the company beat earnings estimates and increased its guidance for the full year beyond analyst expectations. The professional social network's profit fell 38% to $2.8 million despite an 89% increase in revenue.

Toyota (TM) sold more vehicles than General Motors (GM) in the first half of the year. In the last quarter, the Japanese automaker made its highest quarterly profit in four years. Earnings rose to 290.3 billion yen, up from 1.16 billion in the same period last year, when production was disrupted by natural disasters in Japan.

The US Department of Justice, the Commodity Futures Trading Commission, and the Financial Services Authority in the UK have made subpoenas and requests for information from Bank of America (BAC) with regards to the rigging of the LIBOR benchmark rate.

Twitter: @vincent_trivett
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