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Futures vs FV: +3.2 SP, +6.2 NASD. Futures indicate market ready to continue new month rebound after initial eco report of the day showed productivity less then expected (0.2% vs 0.5% vs 0.0% prior) but unit labor costs well lower (2.3% vs 3.2% exp vs 3.8% prior). Challenger Gray reports job cuts lowest since 2000; may bode well for Friday's jobs report. Bond curve inversion dropping to 7BP (from 9 over weekend & 19 just 2 weeks back) as short end falls faster than long (that is the threat of a rate cut pushing it as we discussed several weeks back). Futures up despite rebounding oil (63.09, +0.65). Stage is set for a further rebound at least into the next data @ 10ET (ISM Services, Factory orders). Again we are watching to see how far this rebound can carry & whether volume can ramp up to show a new buying round versus just a new month, new $ relief move. If we get some good volume on individual plays we won't turn away from them but we will also be using the bounce to trim some marginal plays. Resistance: NASD (2468, 2477); SP500 (1420, 1425).
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