The market is in a wait and see mode as investors look to the NFP report for direction. Last month’s announcement of QE3 means that if the numbers disappoint, the likelihood of additional stimulus is essentially zero. Expectations are for 110k jobs and a downtick of the unemployment rate to 8.1%.

Market watchers are still trying to determine the outcomes of the election and their effects on the market. Romney seems more inclined to tackle the deficit which would harm the market in the short term. He has also pledged to replace Fed chief Ben Bernanke after his term is up. Granted this is all said in the heat of the campaign, and seeing as Romney’s biggest contributors are investment houses, it is probably doubtful anything major would happen.

In commodities, oil prices are dropping this morning with Nymex futures down 91 cents to $90.80 per barrel. Gold is also off a bit as it trades near the $1800 per ounce level.

Internationally most markets were up in the overnight hours. Japan took a brief dip after the BOJ refrained from announcing further monetary easing action. Japan ended their session higher though as investors shook that piece of news off. [Read more...]