Monday, January 12, 2009
Jobs Overboard!
On Friday we got the jobs report and it was, as expected, a shocker. The Dow lost 143.28 points to close at 8,599.18. The SPX fell 19.38 points to finish the session at 890.35. We are in the green and looking ok.
Nonfarm payrolls fell by 523,000 in December, mostly in line with estimates. However, this was well below the rumour that was floating around near 750,000. However, October and November was revised lower by a total of 153,000, so the actual amount of job losses in 2008 totaled nearly 2.6 million. The unemployment figure was worse than expected, rising 5-tenths to 7.2 percent.
Futures turned positive initially following the jobs data, but once the market opened, selling occurred. However, it was in the last hour of trading which saw the real damage with stocks ending the session with significant declines. Though economic data has shown just how severe the recession has become, traders are hoping that President-elect Obama’s stimulus package will provide the strength needed to get things on track sooner rather than later!!
Overall, stocks saw declines this past week which has really helped our play. Friday’s losses sent the Dow below its 50-day moving average support, although the SPX and Naz were able to hold these levels.
If the SPX does not hold the 890 mark today then watch out below.
Until next time.
Nonfarm payrolls fell by 523,000 in December, mostly in line with estimates. However, this was well below the rumour that was floating around near 750,000. However, October and November was revised lower by a total of 153,000, so the actual amount of job losses in 2008 totaled nearly 2.6 million. The unemployment figure was worse than expected, rising 5-tenths to 7.2 percent.
Futures turned positive initially following the jobs data, but once the market opened, selling occurred. However, it was in the last hour of trading which saw the real damage with stocks ending the session with significant declines. Though economic data has shown just how severe the recession has become, traders are hoping that President-elect Obama’s stimulus package will provide the strength needed to get things on track sooner rather than later!!
Overall, stocks saw declines this past week which has really helped our play. Friday’s losses sent the Dow below its 50-day moving average support, although the SPX and Naz were able to hold these levels.
If the SPX does not hold the 890 mark today then watch out below.
Until next time.
# posted by Paul @ 5:53 AM 
