A Look Ahead to the August Jobs Report

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Sept. 5 (Bloomberg) –- Commonwealth Financial Network CIO Brad McMillan discusses the jobs report out tomorrow. He speaks with Matt Miller on Bloomberg Television's "Street Smart." (Source: Bloomberg)

56 minutes past the hour which means we are "on the markets." i am matt miller.

Finishing up euro .5%. the dow very little changed up six points.

The nasdaq up about 0.3%. taking a look at treasuries as well.

You see the 10-year knowing -- note, just under 3%. the markets are preparing for the monthly jobs report tomorrow . for more on the highly anticipated number -- really, there is so much going on.

I'm joined by brad mcmillan from commonwealth.

The big jobs number comes out tomorrow which seems to be the focus of the markets today.

There is so much macro.

What do you expect from nonfarm payrolls?

We will see better than what the consensus is.

Consensus is about180,000. there are some factors that will bump that up a little bit.

There is a statistical quirk in the numbers based on hiring college and high school students because not as many were hired and not as many will be leaving.

180,000 is not anything to celebrate.

We have a lot news that looks pretty good.

A lot of our reporters today were saying markets were up on the positive economic data.

The better the data comes in, doesn't it make it easier for the fed to start tapering?

And it's not fantastic for the equity markets?

Tapering at this point is largely priced in.

Everybody expected.

The fed said exactly what it was they're going to do to start tapering.

It's happened.

The only question i see is whether the political risks out there, the debt ceiling crisis being the biggest, will make the fed say they can wait.

Something the markets have learned to ignore, the crisis in the past that have not been a significant problem in the end for equities.

They ignore it until they get very upset the that's probably what will happen this time.

One of the things that could be positive about syria, for example, is we will have a situation with the congress may the unwilling and the administration may the unwilling to put the country in that type of situation which would help kick it down the world -- to down the road.

Concerns about inflation.

Ben bernanke famously said he could deal with that no problem.

Not the non-farm payroll number but the household survey is looked at more closely than the unemployment rate.

When he look at jobs added to, you have to compare that with people coming into the labor force which is household survey comes in.

What you have is the household survey.

We want people to come back into the labor force and it will drive the unemployment rate back up.

When you have that, the unemployment rate going up is going to impact confidence.

Doesn't look healthy going forward?

The number has come down steadily over time and is that the trend going forward?

There are a number of indicators that said hiring the pickup over the next six months or so.

You'll find the unemployment rate is going to drop faster than many people think.

Even as people do come back into the labor force, they will be absorbed.

Brian mcmillan from commonwealth for more "on the markets." stay with us here on bloomberg every hour at 26 and 56. ?

This text has been automatically generated. It may not be 100% accurate.

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