Nonfarm payrolls rose by 114,000 which was roughly in-line with consensus, but were revised up for both July (from 141,000 to 181,000) and August (from 96,000 to 142,000). Private payrolls increased by 104,000, up slightly from 97,000 in the prior month.
Average hourly earnings rose 0.3% (consensus 0.2%; prior 0.0%) and the average workweek moved up 0.1 to 34.5 hours (consensus 34.4). The unemployment rate declined from 8.1% to 7.8%. This is the lowest unemployment rate since January 2009. What is impressive about the unemployment rate is the participation rate increased from 63.5% to 63.6%. The number of people working part-time jumped by 582,000, which accounts for 67% of the increase in the number of employed people.
Options market makers continue to increase their positive net delta position on the S&P 500. The net delta number has just crossed up through the 5 day exponential moving average which is technically bullish. Of the top 20 options trades, 15 were call buyers.
In Murphy Oil (MUR) there was a buyer of 20,000 Jan 62.5 calls. This trade represents 60% of all open interest. In Rovi (ROVI), there was a buyer of 3,400 Nov 15 calls. This was 35x normal and unusual in that the stock has shown little volatility since breaking down in July. In Renren Inc. (RENN), there was a buyer of 7,000 Oct 4 calls. The stock is currently trading at about $4.00. On the bearish side, there was a buyer of 15,000 Jan 2014 5 strike puts on MBIA (MBI). The stock is currently trading at roughly $11 per share.