Good morning. Investors are reacting to the jobs report where nonfarm payrolls fell by 51K in July (consenses expectations were at 70K) while the unemployment rate increased to 5.7% (a four-year high and above the 5.6% consensus expectation). Since December, 463K jobs have been lost.

Although the jobs report is today's big story (and premarket futures gained following the report's release), there was some disappointment of a big loss at General Motors (GM) which saw revenues drop 18% from last year. In addition, Deutsche Bank had its counterparty credit rating cut this morning. At 10:AM we have reports on Construction Spending and the ISM Manufacturing Index.

Premarket gainers: THOR, BYD, SWIM, USMO, SGMS, ATRO, IR, IDCC, GXDX, HSTX, VDSI, SMG, SCOR, CHRD, PAR, CNXT, VPRT, VSEC, CSTR, TMA, EXTR, TNP, ANR, & GPRO.

Premarket losers: ELN, BIIB, TOMO, GM, F, BOOM, SGP, EHTH, RNWK, JAVA, VCLK, OSK, STO, IMMR, MRNA, HNSN, GFI, CTSH, VRTX, & WINN.

A number of traders are now putting the 1300 level in the S&P 500 back on their trading radar in any upside move as a key technical level. A break above that area (and reclamation of the 50 day moving average) would set up a move back up to the upper end of the downtrend channel we've been in for some time now:

Finally, an interesting factoid from Bloomberg this morning - all of the 23 developed nations in the MSCI World Index except for Canada have experienced bear-market plunges of 20% or more since September. Last week Brazil became the 23rd out of 25 developing countries in the MSCI Emerging Markets Index to enter a bear market. Only Jordan and Morocco have avoided the bear so far.

Let's make this a great month!