ETF Morning Call: Markets Await US Jobs Data

Ndubisi Onuora
November 2, 2012



  • Asian stock indexes gained today on what investors perceived to be improving signs of global economic growth following positive U.S. and China economic data.
  • The Nikkei advanced 1.7 percent; S'P/ASX 200 increased 0.05 percent; Hang Seng gained 1.33 percent; KOSPI rose 1.07 percent; the Shanghai Composite climbed 0.6 percent.



  • European stock indexes dropped as investors awaited the U.S. nonfarm payroll data. Look for changes in the Vanguard MSCI Europe ETF (VGK).
  • PMI manufacturing for the EMU, Germany and France all came in below 50, a sign that manufacturing is contracting in the eurozone as a whole, but also in both of its largest economies.



  • U.S. stock futures pointed to a flat opening ahead of the release of October non-farm payroll data and factory order data.
  • Analysts estimate that nonfarm payrolls increased by 125,000 in October after an increase of 114,000 in September. This would place the unemployment rate at 7.9 percent.
  • Factory orders are expected to increase 4.9 percent in September from a 5.2 percent drop in August. The decline in August was due to a drop in aircraft orders.




  • Third-quarter earnings – before market
  • Estimated EPS = $2.83
  • ETF Movements

◦      iShares Dow Jones U.S. Energy Sector Fund (IYE)

◦      Vanguard Energy ETF (VDE)

◦      Energy Select Sector SPDR (XLE)

◦      iShares MSCI Global Energy Producers Fund (FILL)



All commodities news is as of 7:25 a.m. ET.

Gold and Silver Fell

  • Gold dropped 0.38 percent, or $6.50, to $1,707.73. Expect decreases in the SPDR Gold Shares physical bullion ETF (GLD).
  • Silver descended 0.91 percent, or $0.29, to $31.98. Expect falls in the iShares Silver Trust (SLV).

WTI and Brent Oil Declined

  • The December contract for WTI crude oil slipped 0.80 percent, or $0.70, to $86.39 per barrel.
  • The December contract for Brent crude oil fell 0.36 percent, or $0.39, to $107.78 per barrel.
  • Expect decreases in the United States Oil Fund (USO) and in the United States Brent Oil Fund (BNO).


Fund Flows

None as of yet today


ETF Launches

None as of yet today


ETF Filings

None as of yet today


Economic Calendar


  • Employment Situation - 8:30 a.m. ET
  • Factory Orders - 10:00 a.m. ET



  • Canada


◦      Labour Force Survey - 8:30 a.m. ET


  • France


◦      PMI Manufacturing Index - 4:50 a.m. ET

  • Germany


◦      PMI Manufacturing Index - 4:55 a.m. ET

  • EMU


◦      PMI Manufacturing Index - 5:00 a.m. ET


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