Stocks got pummeled yesterday on Wall Street and around the globe. Debt and economic fears sent the Dow Jones Industrial Average down 268.37, or 2.6 percent, to 10,002.18. The broader Standard & Poor’s 500 index fell 34.17, or 3.1 percent, to 1,063.11, while the tech heavy Nasdaq composite index slid 65.48, or 3 percent, to 2,125.43. The Russell 2000 index of smaller companies fell 20.98, or 3.4 percent, to 589.68.

Morning Outlook

Wall Street is heading sharply lower once again Friday as the market awaits the critically important jobs report. Debt fears continue around the globe and have made there was to U.S. markets over the past few days. So far in premarket action, Dow Jones industrial average futures tumbled 63, or 0.6 percent, to 9,916. Standard & Poor’s 500 index futures dropped 7.80, or 0.7 percent, to 1,053.90, while Nasdaq 100 index futures fell 4.75, or 0.3 percent, to 1,730.00. The market is in free fall since the 15 month highs were hit in mid January.

Regardless of the jobs reading this morning, the Labor Department is expected to revise their jobs figures for the past year totalling some 800,000 additional jobs have been lost. We have now lost nearly 8 million positions since the start of the recession in December 2007, over two years ago. To get the unemployment rate to 6 percent, the economy would have to have a net job gain of about 200,000 every month until 2016. It is staggering figures like this that create the new normal of unemployment at around 7 percent.

We are just a few good reading from turning the whole mood and narrative of the country around. However I dont think today will be the start.

Currencies and Commodities

The greenback is soaring in trading this morning, proving once again that despite our massive debt levels, it is the true reserve currency and safe haven for investors. The dollar rose 0.4604% at 89.465 yen in the currency market. The euro depreciated 0.1939% to $1.3696 while the pound lost 0.4062% to $1.5690. Gold fell $7.70 to $1055.30 an ounce, while silver dropped 1.27% at $15.15. Light, sweet crude for March delivery fell 6 cents to $73.08 per barrel on the NYMEX; a 0.08% decline.

Economic Calendar

8:30 AM
Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. Analysts expect 5,000 jobs to have been gained in January, while the unemployment rate rises from 10% to 10.1%.

The average hourly work week is suppose to remain level at 33.2 hours. Once again, we would like to see an increase in the work week and in temporary help, which are all precursors to further full time employment.