After hitting a 2011 nadir early this week, equities have rebounded for three straight days on hopes that European officials are getting closer to resolving the Greek debt crisis. 

With the release of the nonfarm payrolls employment report this morning, equities are pausing as attention shifts back to the U.S.

An hour before the report, fixed income and equity traders are hesitant to make big moves.

Treasuries yields are higher after the nonfarm payrolls report: the two-year yield is 0.27%, the 10-year yield is 2.08%, and the 30-year yield is 3.05%.

The last three days have seen the Dow jump 468 points, or 4.39%. Compared to one month ago, the blue chips index is just 16 points lower, or 0.14%.

Global markets have been mixed: In Asia, Japanese and Hong Kong shares finished 0.98% and 3.11% higher; in Europe, the FTSE 100 is currently down 0.25% and the CAC-40 is off 0.55%.

British shares are under pressure after Moody's downgraded several UK banks. The credit rating agency had put the sector on negative watch for reduced state support and followed through with the warning today by cutting Royal Bank of Scotland by two notches to A2. Eleven others, including Lloyds, were cut by a single notch.

"The government is likely to continue to provide some level of support to systemically important financial institutions," Moody's wrote. "However, it is more likely now to allow smaller institutions to fail if they become financially troubled."

Key Events Today:

8:30 - Economic uncertainty and stock market volatility creates a rough environment for companies to hire. The expectation is the private labor market grew modestly in September, while the public sector saw net losses. Economists looks for 55k new jobs overall in the Employment Situation report - certainly not enough to keep up with population growth - but it's 55k more than in August. The Unemployment Rate should stay at 9.1%.

"Heightened uncertainty from the European debt crisis and soft U.S. economic data have prompted U.S. firms to shelve or pare their hiring plans," said BMO Capital Markets. Economists there look for a 65,000 gain in private payrolls but note that 45,000 of them are striking Verizon workers returning to work.

"Hiring was probably restrained by continuing extreme uncertainty over the outlook, while firings were probably more severe as initial unemployment insurance claims were higher than in August," added IHS Global Insight, predicting a 9.2% jobless rate. "We expect just 25,000 jobs added overall - meaning there would be a loss of 20,000 jobs but for the return to payrolls of 45,000 Verizon workers after a strike. We expect 70,000 private jobs added (just 25,000 ex-Verizon), and a loss of 45,000 government jobs, in line with recent trends."

Citigroup said September will be the fourth month of lackluster growth. 

"The private employment gain probably was notably larger than in August ut most of the pickup reflects the swing from 46,000 striking and then returning Verizon workers," Citi added. "We think government employment will continue to be a drag on payrolls. 

10:00 - Wholesale Inventories should pick up 0.6% in August, following a 0.8% gain in July and a 0.6% increase in June. 

"Energy prices dropped in August, which should lend downward pressure to wholesale inventories," said Nomura Global Economics.

3:00 - Economists expect outstanding Consumer Credit to grow by $8 billion in August, following back-t0-back gains of more than $10 billion ($12 billion in July and $11.3 billion in June). 

The July gain was driven solely by installment credit, which picked up $15.4 billion - the largest since November 2001 and the fifth largest in data going back to 1943, according to IHS Global Insight. Growing credit can be a good sign for the economy as it indicates a willingness among consumers to buy big-ticket items, but the latest data points to federal loans rather than produced goods.

"The fact that increased demand for student loans is behind the non-revolving bounce is not a good sign," IHS Global said. "It indicates that households are having more and more difficulties financing studies of their kids."

August data should also be driven in August motor vehicle purchases and student loans, according to Nomura. "For this reason, we expect non-revolving credit to account for nearly all of the increase."