MV Weather Report: Sun Breaks Through Jobs Overcast
Rain or shine, we review the day's biggest stock stories.
Last night, we mentioned that Goldman Sachs revised its jobs forecast shortly before the bell to -250k. Well Goldman nailed it, as the jobs numbers came in at -263k far greater than the 175k consensus analysts estimates.
Of course, the market hated the number, immediately selling off in pre market trading before recovering intraday. The S&P 500 managed to close down -0.45% to 1025, off the low of the day at 1019.
On today's Buzz and Banter, Professor Sean Udall gave his thoughts on the Jobs number.
"The jobs number is providing fuel for more selling. However, many charts have moved to neutral/oversold very quickly and extreme oversold readings on intraday charts.
"Selling in today's premarket session seems a bit severe given that the jobs number while poor was also not a shocking bad outlier type number and also confirms that improvement in the jobs market is certainly occurring. Further, I expect that we will see actual jobs gains during this calendar year, which will precede a series of monthly jobs gains in 2010.
"Will the market indeed give the "perfect entry" to all those that have missed the bulk of this rally and badly want in at prices they were holding their noses at before?
"Last point on jobs... if the government employment numbers were not so poor, this jobs number might actually be something to spur buying or even a snap back rally."
Later in the Buzz, Professor Udall vibed on some popular stocks he trades in his portfolio.
"I don't care so much about how far the market corrects. I'm more concerned about my select list of stocks correct. As an example JPMorgan (JPM) has corrected 13% plus off recent highs and anything between 15%-20% will leave me plenty of future upside both short and long term.
"Is Apple (AAPL) not going to $225, 250 or the $300's I've talked about?Is Google (GOOG) not still going to be fundamentally cheap at $600?Is Morgan Stanley (MS) and Goldman Sachs (GS) still not going to dominate the new issue market for the next decade? Speaking of GS -- how many would love a $160-165 or lower entry. I don't think we get that chance. Is Broadcom (BRCM) still not going to dominate the communication chip segment for the foreseeable future as we enter the next phase of dynamic global Internet growth driven by real time video applications?
"All that being said, I'm still holding my hedges but will be watching today's action closely for opportunities to partially or even completely close them out."
Because of today's ugly jobs number I thought the market should have been down a lot more, so a flat close is a victory for the bulls. That being said I'll tip my hat to the bears,
they've had a great two week run.
Have a great weekend!
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