Payroll company ADP always releases their job number ahead of the government, and the number was horrible. Although the ADP number is not Gospel and often incorrect it is a good gauge of what the Government will release friday. The ADP report showed only 119,000 private sector jobs where added in April which is way below the forecast of 170,000. Last month the official number reported was 201,000.
Upon this report markets immediately went lower in pre-market trading and remanded under selling pressure throughout the trading session.
The DOW ended down .09%, S&P 500 was down .25%, and the Nasdaq edged higher thanks to Apple (AAPL) to .31%.
Treasuries of the 10-year note closed at 1.92%.
European unemployment remains high with the 27-nation block at 10.2% in March and the 17-nation eurozone pushed higher to 10.9%. In all, 13 European nations have double-digit unemployment with everyone’s favorite lead dog in the race to a bailout, Spain at 24.1% and the old dog of Greece at 21.7%. Those are Depression (not recession) unemployment figures.
Apple (AAPL), like the market, is still stuck in a trading range. However the stock did fight its way higher today but closed off its highs at $586.00.
Big movers today were natural gas company Chesapeake Energy (CHK) fell 12% in the first hour of trading after a surprise drop in quarterly profit and ended down 14%. On the upside was the travel website TripAdvisor (TRIP) which pushed up 17% after reporting a whopping 118% gain in net income for the first quarter.
With a sour jobs report due tomorrow the question becomes reason to sell or reason to buy? Based on historical analysis after having the bad – flat – year we had in 2011 the following year’s May-Oct has never presented a loss since the 1940’s and actually averages a 4% gain.
That doesn’t mean we won’t stay flat for the next couple of months but likely we will see some sort of asset purchasing program in late June, which is now being touted not as QE3 but as a Bond Purchasing Housing Stability Plan ~ or something along those lines.
Friday look for good equities that get taken lower with the falling tide and don’t be afraid to go Long.