The Market Implications of Tomorrow's U.S. Jobs Report

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Sept. 4 (Bloomberg) -- Brean Capital's Peter Tchir and JPMorgan's Heather Loomis preview the August U.S. jobs report and discuss how it may impact U.S. financial markets with Trish Regan and Mike McKee on "Street Smart." (Source: Bloomberg)

Tomorrow is the big day.

What are you looking for?

I think we're going to get a decent number somewhere between 210,000 and 230,000. you just would see a good report across the board with for dissipation rate up as well.

240,000? i think concern stabilize.

The same question i put yesterday to rich claretarida, will it change unless we see a difference?

The market will take it relatively in stride.

At the same time, heather, we've been an environment where people like the idea that they can continue being supportive and accommodated.

If we see that wage growth signaling the route to do something sooner rather than later, we are going to get that 0.25% rate cut.

Will the markets selloff?

It will be hard to predict what the markets going to do.

The past five job reports tom on average about 290,000, you have seen the cumulative move in treasury about -13 basis points.

It is not reacting in higher yields to more positive economic data.

It's been tough, but i agree if we begin to see some movement on wages, that's a signal that the fed will move sooner rather than later.

The ecb finally stepping up.

If we can finally break the trend, i think equity will turn it around.

Can we do that if the ecb is getting into them?

The fed comes out of qa but if they are putting more liquidity into it, does it really matter?

-- if the fed comes out of qe, does it matter?

Small and mid-cap european countries have been week.

Then there is one etf up there, hedge, remember when the rage was to invest in the nikkei hedge.

Becca be an interesting play.

-- that could be an interesting play.

Anyone worried about the currency?

How does that affect your investing?

It's one reason i still like the hedg.

I would look at hedging the currency risk with that.

One analyst told stephanie ruhle.

This means it's the beginning of the end for bonds and we are done.

Do you agree with that?

The price action in bonds today was really interesting because you saw a lift in treasury yields.

Through the course of what's going on with the ecb and the fed, it has told down yields in united states for the majority of this year.

We finally saw that pattern break.

Perhaps it's an knowledge meant that the u.s. economy is very different than europe.

Their growth is 0.7. we are at about 2% each and that warrants a different bond market.

Does this continue moving from here or do we have to wait until the fed actually does something?

I think markets move ahead of the fed.

This would definitely be before the fed actually take actions on the federal funds rate.

Why isn't we are an environment where yields are as low as they are and if valuations are where they are.

It is like a brisk on and risk off when it comes to the desire for a safe haven.

They will hike the rates very slowly.

There have been $65 billion issued so they will get as much debt as they want.

About 25 william dollars of that will be long-term so we still have this debt fueled equity rally where they can get cheap that.

It lets them do things buying whatever they want including share buybacks and dividends.

That continues even if the fed starts moving up slowly.

Are we risk of the fed inadvertently creating another crisis?

I think we are.

That is why they will hike may be as early as march because they need to get ahead of this curve and be a bit row arc is.

Draghi is given the ammunition to go ahead here.

He's finally putting on the gas there.

It takes 18 months for anything the fed does at its policy to catch up to the overall economy could.

-- to the overall economy.

Is there a risk or is it too late?

They're trying to balance the risk here between inflation heating up without growth stalling.

Strong dollar will help us keeping inflation low.

And that is another impact of the weak euro.

Strong dollar will help what?

It will keep inflationary pressures low.

Oil is down over the past few days.

And the trade numbers that come out today.

The fed's first move will not be the one that matters in the bond market.

They already said they would do almost nothing the first time.

It's where they end up where they will trade on.

How fast do they get there?

I think they get to 1% fairly quickly to get to the rate of inflation.

Then we will see them go back into a hold and have to either pull back or do some sort of qe again.

We have some breaking news.

Retail sales figures from gap in

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


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