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How to Play Friday's Jobs Report

Thursday, 3 Jun 2010 | 6:24 PM ET

All eyes will be on the jobs report when released Friday, which President Barack Obama said will show strong growth in US payrolls and Vice President Joe Biden described as “blockbuster.”

Based on income tax collections, Charles Biderman, CEO of Trimtabs Research, estimates 125-thousand private sector jobs were added in May. That’s down from 200-thousand in April, Biderman says. The numbers will affect any rally because the market has not priced in a sequential decline in wages and salaries going forward year over year, he explained.

On average, Friday's nonfarm payrolls report is expected to show the economy added 513,000 jobs in May, according to a Reuters poll, with forecasts ranging from 175,00 to 750,000.

What’s the trade?

Brian Kelly of Kanundrum Capital said that anyway you look at it, the jobs report will be troubling because there are so many ways traders could play it. He’s looking at the 1060 level and if the market climbs, he’ll buy.

Tomorrow's Headlines Now
A look at the three headlines that could move the market tomorrow, with Paul Sankey, Deutsche Bank oil analyst and Charles Biderman, Trimtabs Research.

Editor's Note: The Charles Biderman interview begins at 3:50 of this video.





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Trader disclosure: On June 3, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Kelly Owns (STD) Calls; Kelly Owns (IBM) Calls; Kelly Owns (NBG) Calls; Najarian Owns (C) Calls; Najarian Owns (HK) Call Spread; Najarian Owns (JEC) Call Spread; Najarian Owns (LCC) Calls Spread; Najarian Owns (NOVL) Calls; Najarian Owns (SD) Call Spread; Terranova Owns (RIG), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (IPSU), (SWN), (AAPL), (APA), (UPL), (CVS), (IPI), (TEVA), (FXB), (GLD)

For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)
Virtus Investment Partners Owns More Than 1% Of (ALK)
Virtus Investment Partners Owns More Than 1% Of (XLK)

For Brian Kelly
Kanundrum Capital Owns (APA)
Kanundrum Capital Owns (IBN)
Kanundrum Capital Owns (FCX)
Kanundrum Capital Owns (FXE)
Kanundrum Capital Owns (JOYG)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (STD)
Kanundrum Capital Owns (NBG)
Kanundrum Capital Owns (IBM)

For Brian Stutland
Stutland Equities Is A Market Maker In VIX And SPX Futures And Options
Stutland Equities Is A Market Maker In VXX Options
Stutland Is Long U.S. Treasuries

For Paul Sankey
(XOM), (CVX), (MUR), (HES), (MRO), (VLO) Is An Investment Banking Client Of Deutsche Bank Securities
Deutsche Bank And/Or Affiliate(s) Has Received Non-Investment Banking Compensation From (XOM), (CVX), (MUR), (HES), (MRO), (VLO) In Past Year
(XOM), (CVX), (HES), (MRO), (VLO) Has Been A Client Of Deutsche Bank Securities In Past Year (Non-Investment Banking Securities-Related Services)
Deutsche Bank And/Or Affiliates Owns 1% Or More Of (MUR), (HES), (MRO), (VLO)

For Deborah Weinswig
An Employee Of Citigroup Global Markets Is A Trustee Of (TGT)
An Employee Of Citigorup Owns (WMT)
An Employee Of Citigroup Owns (JCP)
Citigroup Global Markets Or Affiliates Owns 1% Or More Of (SKS)
Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed Offering Of (DG), (KR), (WMT) In Past 12 Months
Citigroup Global Markets Or Affiliates Has Received Investment Banking
Compensation For Services Provided In Past 12 Months From (DG), (KR),(SKS), (SVU), (TGT), (WMT)
Citigroup Global Markets Expects To Receive/Seek Investment Banking Compensation From (WMT) In Next 3 Months
Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) In Past 12 Months
(DG), (KR), (SKS), (SVU), (TGT), (WMT) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets
(CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SKS), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services)
(HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment-Banking, Non-Securities-Related Services)
Citigroup Global Markets Or Affiliate Received Compensation From (DG) In Past 12 Months
Citigroup Global Markets Is A Market Maker In (CVS), (M), (COST)
Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (HD), (JCP), (KR), (LOW), (M), (JWN), (SWY), (SVU), (TGT), (WMT), (COST)
Citigroup Global Markets Or Affiliates Owns 5% Or More Of (SKS)

For Charles Biderman
Biderman Is Short (CRM)
Biderman Is Short (AAPL)
Biderman Owns Gold
Biderman Owns TIPS


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