All three of the major indices are carrying losses into the final hour of trading.
Though the S&P 500's technology sector is down 0.4%, weakness among large-cap tech is more noticeable in the Nasdaq 100, which is down 1.0%. Shares of Apple (-1.89), Research In Motion (-2.20), and Microsoft (-0.24) have all spent nearly the entire session in the red.

"July unemployment rate jumped to 5.7% and aggregate hours worked declined on a shrinking workweek, both indications that the labor market remains in sustained decline."

"We expect coreinflation to remain contained through 2009, with the core PCE deflator
leveling out within the FOMC's 1.5-2.0% implicit target.Slow GDP growth, rising unemployment and tame rents should offset higher commodity prices, a weak dollar and soft productivity growth."

Stocks continue to slog along through negative territory. The respective positions of the three major indices have improved, though. At their lows, the Dow was down 1.0%, the Nasdaq was down 1.7%, and the S&P 500 was down 1.0%.
Weakness is most distinguishable in utilities and materials, both down 1.8%. Every component of the Dow Jones Utility Average is now in the red. Weakness in materials is focused around Monsanto (-3.72) and Freeport-McMoRan (-4.50).

The dollar rose to a one-month high against the euro as a government report showed employers in the U.S. eliminated fewer jobs last month than analysts forecast.
The euro weakened as German retail sales dropped in June more than twice as much as forecast, undermining the case for the European Central Bank to boost interest rates again this year. The pound headed for its biggest weekly drop since mid- June as U.K. manufacturing shrank by the most in a decade.
``The labor market is weak, but the pace of job erosion is slowing down,'' said Mike Moran, a senior currency strategist at Standard Chartered in New York. ``Europe is catching up with where the U.S. has been. It does put a floor under the dollar.''
U.S. payrolls shrank in July for a seventh straight month, decreasing by 51,000, matching the previous month's decline, the Labor Department said today in Washington. The median forecast of 79 economists was for a reduction of 75,000. The unemployment rate rose to 5.7 percent, the highest since March 2004, from 5.5 percent.
The dollar pared its gain versus the euro as crude oil rose as much as 3.6 percent to $128.60 a barrel. Israeli Deputy Prime Minister Shaul Mofaz said Iran, OPEC's second-largest oil producer, is on a path toward a ``major breakthrough'' in its nuclear program.
The yen rose to a two-week high against the euro as slowing global growth prompted traders to pare holdings of higher- yielding assets funded in Japan.

The stock market continues to chop along in negative territory. Despite the widespread losses and the generally dour tone, the defensive-oriented utilities sector (-1.8%) is trading appreciably lower.
In the Dow Jones Utility Average only Firstenergy (+0.01) and Williams Companies (+0.02) are trading higher.

"No change in Fed policy in '08 but in '09 we expect at least 50 basis points of tightening."

Investors consider a 7th straight month of job losses, a huge miss from General Motors and climbing oil prices.
Stocks fell Friday morning as investors considered a seventh straight month of job losses, a dismal second-quarter report from General Motors and oil prices that jumped more than $4 in morning trading.
Employment report. The Labor Department reported a net loss of 51,000 jobs in July, which was not as many as expected. Economists had been forecasting a loss of 75,000 jobs. Nevertheless, it was the seventh straight month of job losses, bringing the 2008 loss to date to 463,000.
The unemployment rate rose to 5.7% from a 5.5% reading in June, which was worse than the 5.6% rate economists were looking for.
General Motors. The automaker reported a massive second-quarter net loss of $15.5 billion, due in large part to restructuring costs. Revenue fell to $37.7 billion from $45.8 billion a year earlier, and far below analysts expectations of revenue of $44.6 billion. General Motors shares fell 8%.
Nissan. Japan's third-largest automaker reported that its second-quarter profit fell 42.8% amid continued softening demand in the United States. Nissan s revenue slipped 4.1% and the carmaker said that the stronger yen cut into its exporting sales. Nissan's stock was down by more than 5%.
Oil. After being down almost $2 earlier in the day, crude prices surged at midmorning. They were up $2.85 to $126.93 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, oil fell $2.69.
COMEX gold for December delivery fell $3.70 to $919.00.
In the bond market, Treasury prices were mixed. The 10-year note was down, sending the yield up slightly to 3.96%.

Economist Annalisa Piazza at Newedge Strategy says ISM data are mixed: rising production "is at odds with the Fed industrial production figures" and a large upswing in employment "is very suspicious given that today's employment report showing another sharp decline in manufacturing payrolls."

Economist Ryan Wang at HSBC says some parts of employ report "were not so bad, but the most important signal for us is the further rise in unemployment from 5.5% to 5.7%, a new cycle high." He says rising unemployment looks genuine "and it is being backed up rising continuing claims, and from consumer surveys on jobs conditions." He says the risk for the FOMC statement is fully balanced risks between growth/inflation and a unanimous decision for no change in rates.

All three of the major indices are trading markedly lower amid broad-based declines. Only 20% of the S&P 500 components are trading with a gain.
Energy (+1.1%) is the lone standout among the major economic sectors. The sector is receiving leadership from oil giants Exxon Mobil (+0.27), ConocoPhillips (+1.38), and Chevron ( +0.44). Exxon actually traded lower yesterday after it announced disappointing earnings results. Chevron is trading higher, despite announcing earnings per share results that failed to meet the consensus estimate. One immediate difference between the two session's is today's higher oil price, which is now up more than 3%.

Economist Stephen Gallagher at SocGen says job losses are not deepening and "are less than the average so far this year."But this does not mean rebound in the economy - he says this will force Fed into a wait-and-see mode.

WTI Nymex crude oil briefly broke above $128.00 on return of geo-political risk premium, with traders citing story about Iran/Israel. WTI Nymex crude oil is now at $127.50, up $3.42.

EUR/USD: $1.5575, $1.5505, $1.5680, $1.5720
USD/JPY: Y107.70, Y108.00, Y105.50

Stock futures continue to indicate an upward start to trading Friday (S&P futures +2.5, Nasdaq futures +4.2). Oil futures remain lower, extending yesterday's decline. Oil services giant Chevron announced earlier this morning second quarter earnings per share results that fell short of the consensus estimate.
The July unemployment rate hit 5.7%, up from 5.5% in June. Nonfarm payrolls fell by 51,000 in July, which is less than the 75,000 decline that was widely expected and even with a 51,000 drop in June.
General Motors reported a hefty adjusted loss of $11.21 per share after revenues slipped nearly 18% from the prior year to $38.16 billion. Meanwhile, Deutsche Bank had its counterparty credit rating cut to AA- from AA at S&P.

Economist Steve Wood of Insight Economics says "Jobs declined again in July, their seventh consecutive decline for the first time since late 2001/early 2002 when the economy was just emerging from the last recession. So far this year, 463k jobs have been lost. The economy has clearly slipped into a mild jobs recession."

Analysts predict the US employment figures will show a loss of 72,000 jobs in July, following a loss of 62,000 in June.
Unemployment rate may rise up to 5.6% versus 5.5% in June.
Avg Hourly Earnings may rise the sema with last month, when it was +0.3%.

The following data were issued
06:00GermanyRetail sales (June) real adjusted -1.4% -0.4% 0.5 (1.3)%
06:00GermanyRetail sales (June) real unadjusted Y/Y -3.9% - 1.0 (0.7)%
07:45ItalyPMI (July) 45.3 46.1 46.9
07:50FrancePMI (July) 47.1 47.3 49.2
07:55GermanyPMI (July) seasonally adjusted 50.9 50.9 52.6
08:00EU(15)PMI (July) 47.4 47.5 49.2
08:30UKCIPS manufacturing index (July) 44.3 45.6 45.8

The yen rose to a two-week high against the euro as faltering global growth and falling stocks prompted traders to pare holdings of higher-yielding assets funded in Japan.
The euro remained on the back foot against the dollar following a weak survey on euro zone manufacturing activity, but further losses were capped as markets fixated on the upcoming release of the closely watched U.S. payrolls data.
The purchasing managers' index for the euro zone manufacturing sector fell to its worst level in more than five years in July.
Elsewhere, the pound came under sharp pressure against the dollar in the run-up to the release of a key survey on UK manufacturing activity, before recovering slightly as markets' attention here also turned to U.S. payrolls.
The purchasing managers' index on the manufacturing sector showed a worse-than-expected fall to 44.3 in July from June's 45.9, with the reading at its weakest since December 1998.

EUR/USD opened in early Europe around $1.5563. Rate held within the narrow $1.5550/80 range. Small offers $1.5580, stronger $1.5600, $1.5630. Bids $1.5550, stops below, stronger bids $1.5520/10, $1.5480.
GBP/USD opened early Europe at $1.9834. Cable dropped below $1.9800 after weak UK PMI data. Disappointingrelease knocked rate down before some rebound to $1.9770.
USD/JPY opened in early Europe around Y107.61. Rate printed low on Y107.30 before recovering up to Y107.70. Dlr-yen offers Y107.90/00, stronger Y108.30/60, stops above.

Attention turns to Payrolls numbers release at 12:30 GMT.The U.S. employment figures are expected to show a loss of 72,000 jobs in July, following a loss of 62,000 in June.

EUR/USD: $1.5575, $1.5505, $1.5680, $1.5720
USD/JPY: Y107.70, Y108.00, Y105.50

EUR/GBP tested strong resistance at stg0.7885, but failed to break above, spurring the current retreat. Nowrateholdsaroundstg0.7870.

The euro remained on the back foot against the dollar following a weak survey on euro zone manufacturing activity, but further losses were capped as markets fixated on the upcoming release of the closely watched U.S. payrolls data.
The purchasing managers' index for the euro zone manufacturing sector fell to its worst level in more than five years in July.
The U.S. employment figures due later on Friday are expected to show a loss of 72,000 jobs in July, following a loss of 62,000 in June.
Elsewhere, the pound came under sharp pressure against the dollar in the run-up to the release of a key survey on UK manufacturing activity, before recovering slightly as markets' attention here also turned to U.S. payrolls.
The purchasing managers' index on the manufacturing sector showed a worse-than-expected fall to 44.3 in July from June's 45.9, with the reading at its weakest since December 1998.

Resistance 3: Y110.60
Resistance 2: Y109.60
Resistance 1: Y108.40
Current price: Y107.30
Support 1: Y107.30
Support 2: Y106.50
Support 3: Y106.00
Comments: Dollar tested 23.5% Fibo level at Y107.30 (Y103.70 - Y108.40 move). Below losses may widen to Y106.50 and Y106.00. Strong resistance is around yesterday’s high on Y108.40 with a break above will open the way to Y109.60. Stronger level comes near channel line on Y110.60.

Resistance 3: Chf1.0610
Resistance 2: Chf1.0560
Resistance 1: Chf1.0520
Current price: Chf1.0481
Support 1: Chf1.0400
Support 2: Chf1.0350
Support 3: Chf1.0280
Comments: Dollar trades volatile today ahead if Payrolls report. Minor support comes at yesterday’s low on Chf1.0400. Below correction may dip to key level on Chf1.0350 (channel support line from Jul 15) with a break under will open the way to Chf1.0280 (Jul 23 lows). Resistance is around Wednesday’s highs on Chf1.0520. A bit higher there is stronger level on Chf1.0560 (upper bound of the upward channel from Jul 15). Break above will open the way to May highs on Chf1.0610.

-Kaoru Yosano named as new Economics Minister -- replacing Hiroko Ota
-Bunmei Ibuki named Finance Minister -- replacing Fukushiro Nukaga

Resistance 3: $2.0070
Resistance 2: $1.9950
Resistance 1: $1.9840
Current price: $1.9750
Support 1: $1.9730
Support 2: $1.9650
Support 3: $1.9590
Comments: Techs on pound hasn’t changed. Strong support comes at channel line from Jul 15 on $1.9730. Further target comes at Jul 22 lows on $1.9650. Key support is around trend line from Apr 2006 on $1.9590/00. Minor resistance is mentioned near $1.9840. Stronger level is near channel line from Jul 15 on $1.9950. Break above will open the way to Jul 07 highs on $2.0070.

Resistance 3:$1.5800
Resistance 2: $1.5700
Resistance 1: $1.5600
Current price: $1.5568
Support 1: $1.5520
Support 2: $1.5460
Support 3: $1.5300
Comments: Euro still holds within the narrow range. Strong support zone remains between $1.5520/00 (channel line from Jul 15 and trend line from Dec08 2007 pass here). Break down will accelerate the decline to $1.5460 and then – to Jun lows around $1.5300. Minor resistance comes near hourly high on $1.5600, then – at yesterday’s high on $1.5700. Stronger level is around channel line from Jul 15 on $1.5800.

European equity bourses are trading in the red on Friday, following the late sell-off on Wall Street. Weaker than expected German retail sales and european PMI manufacturing data is weighing on sentiment. CAC-40 is down 40pts, Xetra-DAX is down 53pt and FTSE-100 is down 47pts.

EUR/USD: $1.5575, $1.5505, $1.5680, $1.5720
USD/JPY: Y107.70, Y108.00, Y105.50

EUR
Bids: $1.5550, $1.5530, $1.5500, $1.5480
Offers: $1.5580/85, $1.5600/10, $1.5625/30, $1.5645/55

JPY
Bids: Y107.30/20
Offers: Y107.90/00, Y108.30/60

GBP
Bids: $1.9740/20

Offers: $1.9850/55, $1.9880/85, $1.9900

AUSSIE
Bids: $0.9350, $0.9330
Offers: $0.9400/10

The yen rose to a two-week high against the euro as faltering global growth and a slump in Asian stocks prompted traders to pare holdings of higher-yielding assets funded in the Japanese currency.
The currency advanced the most versus the Australian and New Zealand dollars, favorites of so-called carry trades, on speculation the nations' central banks will cut interest rates.
Traders speculated the Reserve Bank of Australia will lower its benchmark rate by 68 basis points, or 0.68 percentage point, over the next 12 months.
The euro fell against the dollar after a report today showed German retail sales slumped, undermining the case for the European Central Bank to raise borrowing costs.

EUR/USD fell from $1.5590 to $1.5550. Later rate set stable within the $1.5550/80.

GBP/USD printed high on $1.9840 before sharply fell to $1.9752.

USD/JPY also declined from Y107.90 to Y107.30.

U.S. non-farm payrolls dropped by 75,000 last month, following a decline of 62,000 in June, according to a survey of economists. The Labor Department's report is scheduled to be released at 12:30 GMT.

Japan's benchmark stock indices ended Friday's session lower, weighed by overnight falls in the US. The benchmark Nikkei 225 was down 282.22 points, or 2.11%, at 13094.59. The broader-based TOPIX was down 30.69 points at 1272.93.

Stock market fixing:
Nikkei 225 +9.02 +0.1% 13,376.81
Topix +0.63 +0.1% 1,303.62
DAX 30 +19.44 (+0.3%) 6479.56
САС 40 +5.02 (+0.11%) 4405.57
FTSE 100 -8.80 (-0.16%) 5411.90
Dow -205.67 (-1.78%) 11378.02
Nasdaq -4.17 (-0.18%) 2325.55
S&P -16.88 (-1.31%) 1267.38
10YR +26/32 3.94% 99 13/32
NYMEX Crude Oil -2.69 (-2.12%) $124.08

Most Japanese stocks advanced, paring a monthly decline, as investors sought haven in companies whose earnings can weather a global economic slowdown.
Kansai Electric Power Co., which hasn't recorded an annual loss in more than a decade, climbed the most since January. Takeda Pharmaceutical Co., Japan's largest drugmaker, gained after boosting its net income forecast by a quarter. Limiting gains, Nintendo Co. plunged the most in six months after a disappointing profit forecast.
Kansai Electric, the nation's second-largest power producer, surged 5%. Larger rival Tokyo Electric Power Co. jumped 4.6%.
Kansai Electric reported a 27.5 billion yen ($255 million) net loss for the first quarter after the close of trading as higher fuel costs eroded profitability.
Takeda jumped 4.2% percent to 5,750 yen. The company lifted its net income forecast for the current year by 25 percent to 200 billion yen as it integrates its $8.8 billion acquisition Millennium Pharmaceuticals Inc. Daiichi Sankyo Co., Japan's third-largest drugmaker, jumped 3.9%.
NTT DoCoMo Inc. added 1.7%. The country's largest mobile phone operator boosted quarterly profit in spite of declining revenue, while analysts had expected price competition among mobile operators would erode profitability.

European stocks fell, sending the Dow Jones Stoxx 600 Index to its third straight monthly drop, as reports showed the U.S. economy expanded at a slower-than- estimated pace and profits at Unilever trailed projections.
Unilever, the world's second-largest consumer-products company, had its steepest slump since June 2003 after earnings slipped 20 percent. Sanofi-Aventis SA, France's biggest drugmaker, retreated as a decline in sales dragged profit below estimates. BT Group Plc sank the most in eight years after reporting a fourth consecutive quarterly drop in earnings.
Outokumpu tumbled 32% this month after the world's fourth-biggest stainless-steel maker reported profit below analysts' estimates. SBM Offshore, the largest producer of floating oil production platforms, is down 38%.
Unilever dropped 8.4%. Net income fell to 909 million euros ($1.4 billion) from 1.14 billion euros a year earlier, the company said, below the 914.5 million- euro median estimate of analysts.
Sanofi-Aventis sank 4.7%. The drugmaker reported second-quarter earnings that missed estimates as savings from job cuts failed to offset a decline in sales. Sanofi raised its earnings guidance for the year.

European stocks had advanced earlier Thursday after earnings from AstraZeneca Plc, the U.K.'s second- largest drugmaker, and HBOS Plc exceeded projections.
AstraZeneca climbed 3.3% as the company reported second-quarter profit of $1.62 billion, topping the $1.45 billion median estimate in a survey.
HBOS added 7.1%, paring this year's decline to 60%. Britain's biggest mortgage lender said net income dropped to 931 million pounds ($1.84 billion) from 2.1 billion pounds a year earlier. That beat the 792 million-pound average estimate of analysts.

GDP, Exxon disappointments and jump in jobless claims drag on Wall Stree yesterday.

A government report that showed the economy grew at a slower-than-expected pace in the second quarter hit sentiment, as did a surge in initial jobless claims. Exxon Mobil, which reported sales and profit that fell short of forecasts, also dampened the mood.
The weak opening comes on the heels of a big two-day rally for stocks.
In the news on Thursday:
The economy grew at a faster pace in the second quarter than it did in the first quarter, but the pace of growth was not as fast as economists had forecast. The Commerce Department reported that GDP grew at an annual rate of 1.9% in the three months ended in June, up from a revised first-quarter growth rate of 0.9%. GDP for the fourth quarter of 2007 was revised lower, to a decline of 0.2%.
Exxon Mobil: The world's largest publicly traded oil company reported the largest quarterly profit in history, but missed expectations. Exxon reported net income of $11.68 billion. Analysts were looking for a profit of $12.1 billion. Exxon reported revenue of $138 billion, which missed analyst expectations of $144.4 billion.
Motorola announced modest profits for the second quarter, despite slumping handset sales. The tech giant posted earnings of 2 cents per share, excluding one-time charges, which was better than expected.

The dollar was little changed against the euro as reports showed the U.S. economy grew less than forecast in the second quarter and initial jobless claims rose last week to a five-year high.
U.S. gross domestic product increased at an annual rate of 1.9% in the second quarter, the Commerce Department reported today. The median forecast of economists was for an advance of 2.3%. The report also showed a recession may have begun in the final three months of 2007, as GDP was revised to show a contraction in the period.
The euro strengthened earlier versus the dollar after the European Union statistics office reported that the euro zone's inflation rate rose to 4.1 percent this month, the highest since 1992. The European Central Bank raised its main refinancing rate to 4.25 percent on July 3, the highest since 2001.

EUR/USD fell from $1.5590 to $1.5550. Later rate set stable within the $1.5550/80 range.
GBP/USD printed high on $1.9840 before falling sharply to session low on $1.9752.
USD/JPY declined from Y107.90 to Y107.30.

Resistance 3: Y109.60
Resistance 2: Y108.40
Resistance 1: Y107.70
Current price: Y107.30
Support 1: Y107.30
Support 2: Y106.50
Support 3: Y106.00
Comments: Dollar dragged down, currently testing 23.5% Fibo level at Y107.30 (Y103.70 - Y108.40 move). Below losses may widen to Y106.50 and Y106.00. Minor resistance is around Y107.70 with stronger level is around yesterday’s highs on Y108.40. Break above will target Y109.60.

Resistance 3: Chf1.0610
Resistance 2: Chf1.0560
Resistance 1: Chf1.0520
Current price: Chf1.0488
Support 1: Chf1.0400
Support 2: Chf1.0350
Support 3: Chf1.0280
Comments: Dollar rangebound within the narrow range. Minor support comes at yesterday’s low on Chf1.0400. Below correction may dip to key level on Chf1.0350 (channel support line from Jul 15) with a break under will open the way to Chf1.0280 (Jul 23 lows). Resistance is around Wednesday’s highs on Chf1.0520. A bit higher there is stronger level on Chf1.0560 (upper bound of the upward channel from Jul 15). Break above will open the way to May highs on Chf1.0610.

Resistance 3: $2.0070
Resistance 2: $1.9950
Resistance 1: $1.9840
Current price: $1.9837
Support 1: $1.9730
Support 2: $1.9650
Support 3: $1.9590
Comments: Techs on pound hasn’t changed. Minor resistance is mentioned near $1.9840. Stronger level is near channel line from Jul 15 on $1.9950. Break above will open the way to Jul 07 highs on $2.0070. Strong support comes at channel line from Jul 15 on $1.9730. Further target comes at Jul 22 lows on $1.9650. Key support is around trend line from Apr 2006 on $1.9590/00.

Resistance 3:$1.5800
Resistance 2: $1.5700
Resistance 1: $1.5600
Current price: $1.5572
Support 1: $1.5520
Support 2: $1.5460
Support 3: $1.5300
Comments: Euro tried to rebound yesterday, but today the pressure resumes. Overnight range was limited within the 20 points with strong support zone remains between $1.5520/00 (channel line from Jul 15 and trend line from Dec08 2007 pass here). Break down will accelerate the decline to $1.5460 and then – to Jun lows around $1.5300. Minor resistance comes near hourly high on $1.5600, then – at yesterday’s high on $1.5700. Stronger level is around channel line from Jul 15 on $1.5800.

High Low Close
EUR/USD 1.5698 1.5566 1.5596
USD/JPY 108.37 107.55 107.83
GBP/USD 1.9928 1.9779 1.9832
USD/CHF 1.0496 1.0401 1.0473

EUR/JPY 169.16 168.04 168.20
EUR/GBP 0.7894 0.7855 0.7861
GBP/JPY 214.57 213.34 213.88
GBP/CHF 2.0787 2.0686 2.0774

Change % Change Last
Nikkei 225 +9.02 +0.1% 13,376.81
Topix +0.63 +0.1% 1,303.62
DAX 30 +19.44 (+0.3%) 6479.56
САС 40 +5.02 (+0.11%) 4405.57
FTSE 100 -8.80 (-0.16%) 5411.90
Dow -205.67 (-1.78%) 11378.02
Nasdaq -4.17 (-0.18%) 2325.55
S&P -16.88 (-1.31%) 1267.38
10YR +26/32 3.94% 99 13/32
NYMEX Crude Oil -2.69 (-2.12%) $124.08

Switzerland National Day
06:00 Germany Retail sales (June) real adjusted -0.4% 1.3%
06:00 Germany Retail sales (June) real unadjusted Y/Y - 0.7%
07:45 Italy PMI (July) 46.1 46.9
07:50 France PMI (July) 47.3 49.2
07:55 Germany PMI (July) seasonally adjusted 50.9 52.6
08:00 EU(15) PMI (July) 47.5 49.2
08:30 UK CIPS manufacturing index (July) 45.6 45.8
12:30 USA Nonfarm payrolls (July) -58K -62K
12:30 USA Unemployment rate (July) 5.6% 5.5%
12:30 USA Average hourly earnings (July) 0.3% 0.3%
12:30 USA Average workweek (June) 33.7 33.7
14:00 USA ISM Mfg business index (July) 50.3 50.2
14:00 USA Construction spending (June) -0.3% -0.4%