Suddenly, the Jobs Data Matter Again

 | May 03, 2012 | 1:33 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

rax

,

mgam

,

lqdt

The most notable thing about the market action today is how completely the mood shifted from yesterday. Yesterday the poor ADP jobs news was widely shrugged off as irrelevant, and we had quite a few pockets of hot momentum.

Today, the better-than-expected unemployment claims numbers are being ignored, and the momentum has mostly dried up. A few things are moving, such as Multimedia Games (MGAM), Rackspace Hosting (RAX) and Liquidity Services (LQDT), but that is being more than offset with strong reversals and some notable weakness in oil, chips and precious metals. Breadth is more than 2-to-1 negative, and the biggest positive seems to be that retail is holding up, although same-store sales numbers were quite weak.

I suspect that the mood shift is largely due to increased nervousness over Friday's jobs news. The trend in the economic reports recently has been to miss, and given today's ISM Services number and the retail sales figures, it is tough to be very optimistic about that report.

We are making a new intraday low as I write, and that is sending buyers to the sidelines. I'm hearing many complaints from traders who have not made much progress lately, and they are inclined to move into cash rather than fight this action. I see no reason to try to be a hero and bet that the jobs news is going to bail us out. Be careful.

_______

Editor's Links

Columnist Conversations

I am still watching MON for a possible reversal against the time/price parameters. So far we are not seeing a...
Market stages nice comeback from early losses to end basically flat. Gilead Sciences (GILD)has a nice day post...
Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
DRI
Going to $47 without Otis...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.