subject: Real Time Stock Trading Advice Pt1 [print this page] Daily Stock Report for Monday Morning, March 8, 2010 pt1
Stocks reacted positively to the better than expected jobs report on Friday and the US indexes moved up anywhere from 1.2% to 2.1%. The Dow30 was up 1.2%, Nasdaq Composite up 1.5%, S&P 500 up 1.4% and the small caps were strong as reflected in the Russell 200 closing up 2.1% on Friday.
Note that the Nasdaq Composite ended up over 4% for the week and this exceeded the January 11th high that this index had previously.
We now have to interpret this rebound from the February 5th lows to above January highs as a bull run that is continuing and this latest pullback was deeper and longer than the previous ones since the March 10th low of 2009.
The non-farm payrolls were lower by 36,000 jobs last month, lower than the 50k loss expected. The Unemployment Rate is 9.7% which is likely to move back up slightly on the next report.
There is a lot of hiring of temporary workers and these temps are calculated into the jobs reports calculations. If a large percentage of these temps are released after the normal temporary time period hired for, the unemployment rate could move up substantially.
Another factor to watch for is the stimulus from the US government is due to expire at the end of March. This is the massive of buying of the mortgage backed securities to give liquidity to the system started over a year ago. The big question that remains is whether this needs to be extended or the free market system can support what was on life support in late 2008 and still fragile through much of 2009.
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