*** FED vs. NFP Report ***

The possibility of the FED cutting interest rates after the NFP report are getting smaller!

* But that's not negative news.*

Friday's Labor Department report makes it even less likely the Fed will consider rate cuts in the near term, Fed watchers said, since it doesn't show that the jobs market is grinding to a halt.

What the Labor Department said on Friday is that the US economy added 139,000 nonfarm payrolls in May, more than the 126,000 expected by economists. The unemployment rate held steady at 4.2%.

** Investors are currently betting that there is virtually no chance of a cutout of the June 17-18 meeting and that the central bank won't ease its policy again until September at the earliest **