There was chatter that we might see a positive surprise in this
morning's jobs data, but the results were not what Wall Street and
investors had been hoping for.
We still haven't heard much about a pick-up in hiring from
looking at the numerous earnings reports out this quarter, but yet
there were experts willing to believe the private sector was going
to show some impressive jobs gains. Economic data is so much of a
coin-flip that manic one-day reactions are almost always tied to
traders getting caught leaning too hard to one side of the trade.
There are lots of cross-currents about the economy being not as
weak as some describe, but then we also have the side which
believes we are going to follow the course of Japan (deflation)
over the next decade. Predictions that far out are never easy to
nail, so what we like to do is focus on the best time-frame we feel
we can correctly get a handle on, and that is usually the next year
tops. Too much can happen in a rather short period of time to put
out decade-long scenarios. Most of those pundits are doing it
simply to get face-time on the business channels that are suckers
for the ratings-grabbing dramatic headlines.
Despite the decent-sized drop this morning and snapback this
afternoon, commodity-related stocks traded mixed. Freeport McMoran
) continues its recent run, finishing in the green. I cringe when I
see market-watchers loving the rally in the commodity names.
Granted, they are loved by traders who are in the game to make
money, but a rise in commodity stocks will likely be a hit to
consumers' wallets (as well as many businesses), and not something
I view as bullish for the overall picture. Elsewhere, gold-related
stocks bounced up after the recent consolidation. Barrick Gold (
) and Agnico-Eagle Mines (
) led the gains. As for some of the names that pushed lower, PNC
) , EOG Resources (
) and Strayer Education (
) experienced some of the biggest drops by the close. Good comeback
for the markets by the close and we'll see if the momentum can
sustain into next week.
Looking ahead to next week, earnings season begins to see a bit
of a seasonal slowdown. We will be getting reports from the likes
of Walt Disney (
) , Macy's (
) , Nordstrom Inc. (
) , and more.
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