Although there are some pundits, like Bill Gross, that believe today's jobs report was strong enough to support a rate hike in September, the market is acting like it believes that a hike will be delayed. The old "bad news is good news" reaction is playing out again on the softer-than-expected numbers.
It is likely that this is simply reflexive action to some extent. Market players are well trained to celebrate poor news and the algorithms are programmed to buy them. Whether or not weaker-than-expected employment really is such a good thing for the market is still in question.
We have strong buying in the early going. Volume is going to be lighter in front of the three-day weekend, but breadth is very healthy, at better than 4 to 1 positive. Precious metals and small oils are doing well as they are "go-to" names anytime the chances of a rate hike recede.
The FANG names are another "go-to" group when the market bounces, as they are big and liquid, which allows for easy entry by the large funds. Facebook (FB) continues to remain my favorite of the four names.
Advanced Micro Devices (AMD) , which I highlighted recently, is bouncing back from some news and is enticing me to add.
I've had particularly good luck with IPOs recently, such Airgain (AIRG) (my stock of the week) and TPI Composites (TPIC) . Another one that I mentioned not long ago that is perking up nicely today is Medpace MEDP. There should be some initial coverage there soon and I'll be looking to add.
Trading is likely to slow substantially this afternoon and that will keep things choppy.