Minyanville's Market Recap: Healthy Jobs, Markets Surge To Records!
Investors were pleased with the jobs report. Markets surged to records!
This morning's data put the bulls in good spirits. The Labor Department reported nonfarm payrolls rose 110 k versus 100 k cons. The unemployment rate rose as expected to 4.7%, average hourly earnings rose slightly above forecasts by +0.4%, and the average workweek came in at 33 versus 33.8 cons. Professor Cooper wondered on the Buzz whether the same story was being played with an alternate ending, "... didn't last month's jobs data serve to give the Fed cover for its slash and burn deli combo rate cuts?" Read Professor Shedlock's article September Jobs: Crisis Averted for another perspective.
Among the many bright spots today, the tech sector continued its run boosted in part by Research in Motion (RIMM). Professor Macke noted yesterday on the Buzz, "RIMM will beat estimates… the company is in a historic sweet spot for its product…." After reporting positive figures for the quarter last night, RIMM ended the trading day up +12% to finish at $113.25. Apple (AAPL), another one of the year's best performers also surged on the day adding almost +4.0% to close at $162.60, a new all time high. Professor Krueger mentioned both of these stocks in his new article The Other Side of the Gadget Trades.
In other news, the financial sector also participated in the rally. Investors were confident the worst of the credit turmoil was over despite news of major write-offs by several more large banks. JPMorgan Chase (JPM) and Bank of America (BAC) were expected to write down a combined $3 bln due to the effects of this summer's credit crunch. JPM proceeded to add +0.70%, BAC added +0.5%, and Bear Stearns (BSC) led the rally gaining +3%. Professor Depew commented on the Buzz, however, that although the financials have rallied 3% since August 22nd, he still continued to favor the tech, biotech, and energy sectors as better opportunities. Get more of his thoughts on the financials in his daily column Five Things You Need To Know.
In a look at commodities, crude fell $0.27 to $81.17. Most of the metals were slightly weaker except for gold which gained +$3.70 to $747.50. Professor Lewis noted gold's performance on the Buzz. Click here to get more summaries that occurred in our Buzz Bits.
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: ADBE, TXN, BRCM, INTC, REXI, INWK, EWT, Gold, RIMM, GOOG, BIDU, NMX, MFN, BX, MTH
Some bearish trade or investment ideas: TLAB, IYR, BSC, JRJC, CHNR, RCH, FXI
Monday is a light day on the radar with no economic events scheduled.
Here's a preview of the major events for next week:
Tuesday: FOMC Minutes
Friday: Retail Sales, PPI, Michigan Sentiment – Prelim
Major Companies reporting: Alcoa (AA) -- Tuesday after close; Costco (COST) and Monsanto (MON) – Wednesday before open; FCStone (FCSX) – Thursday before open; and General Electric (GE) – Friday before open.
Click here for the full trading radar for next week.
We hope you had a great week and an even better weekend! Be safe and cheers from Minyanville!
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