Friday morning, the S&P 500 Index e-mini futures (ES-U2) are declining lower by 8.00 points to 1353.00 per contract. Traders and investors seem to be reacting negatively to the weak U.S. nonfarm payroll report released at 8:30 am EST. The report showed that there was an increase of 80,000 new jobs created in the month of June, analysts expected a gain of 110,000 new jobs. Either way, this is a pretty bad report at this time in a so-called recovery.
Earlier today, bond yields jumped above the 7.00 percent level on Spanish 10 year debt. This is a higher yield than before the European Summit last week. It is remarkable to see yields so high, this could be problematic for the markets as it confirms what everyone was already suspecting, a European recession. Some equities that will likely be very volatile today include Banco Santander, S.A. (ADR) (NYSE:SAN), Bank of Ireland (ADR) (NYSE:IRE), iShares MSCI Spain Index (ETF) (NYSEARCA:EWP), and the iShares MSCI Italy Index (ETF) (NYSEARCA:EWI).