NFP

Unemplyment rate riases to 5.7%
With the jobs picture still looking weak can one expect to see Fed raise?
For sure wage pressure outlook on inflation has to be held in check

Unemployment Rate:5.5%
NFP:-62000
NFP Revision: to -62000 from -49000

The Initial Claims were much higher at 404,000. 

Continuing Claims 3,116,000

Rate is much higher. 

The dollar got hit on the unemployment rate which was much higher than expected.  This represents a bad number for the dollar as the jump has the potential to scare employers. Typically, when employment rate starts to rise, businesses who are holding off layoffs start to look toward laying off. This leads to a follow the leader mentality often where employers do not want be the last to cut employment.  As a result, the dollar should trade weak.

The NFP number today had a little of everything for everyone.  It was negative indicating ho-hum job picture but it was not bad with the employment rate remaining subdued, wages contained and the good sectors (Health, government, professional and business services and leisure still) adding jobs, while the bad sectors (construction, manufacturing, Retail Trade) subtracting jobs. 

Better numbers should support the USD today.

Construction was the big decline at -68,000 jobs.  Financial jobs rose which is surprising. 

Revisions are worse with the last month going to -76,000 from -63,000

Pieces:

Construction -51,000
Manufacturing -48,000
Financial  - -5,000
Governement +18,000
Health and Educ  +42,000
Leisure and Hosp  +18,000

Analysis: 

The Industry Sector numbers are the following:

The market is understandably volatile as the market digests the NFP and the dilemma at the Fed.   The NFP shows that the weakness from the housing problems may be spilling over into the general economy.  5.0% unemployment rate is certainly the main worry for the Fed.  On the otherhand is the inflation risks which are moving higher as oil and commodities hit new highs.  All point to a lower stock market in my opinion as earning have to suffer.

The Fed will be concerned about the job growth and especially the Unemployment rate rising to 5.0%.  This may lead to a 50 basis point cut at the end of the month (market is starting to price this in).  Bearish for the USD

Good producing jobs -75,000. Constrction -49,000.  Factory jobs -31,000.  Service Providing jobs +93,000.  Retail -24,000.  Government +31,000.