Market's Edge Higher & Wait For Friday's Jobs Report
Thursday, June 3, 2010
Stock Market Commentary:
Stocks closed higher as investors digested a slew of mixed economic data. Volume totals in the US markets were reported mixed compared to Wednesday’s totals; slightly higher on the Nasdaq and lower on the NYSE. Advancers led decliners by a 12-to-7 ratio on the NYSE and by a 17-to-10 ratio on the Nasdaq exchange. There were 28 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 10 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and the Nasdaq exchange.
Economic Data: Jobs & the ISM Service Index:
Thursday’s economic news did little to move the market: retail sales lagged, weekly jobless claims slid, and the ISM service index rose. The Labor Department said jobless claims fell by -10,000 to 453,000 last week and the ADP Employer Services report, based on private-sector payrolls, rose by +55,000 jobs. The ADP reading fell short of the Street’s +70,000 estimate. Before Friday’s opening bell, the Labor Department is slated to released last month’s payrolls report. Economists believe that payrolls rose +523,000 in May which would be the fifth consecutive monthly increase and the largest reading since 1983. Meanwhile, the Institute for Supply Management’s index of non-manufacturing businesses, which currently comprises approximately +90% of the economy, held steady at 55.4 for a third month.
Market Action- Confirmed Rally:
The paper said Wednesday’s move in the Nasdaq composite marked a follow-through day for that index. We have received numerous emails and phone calls inquiring about the discrepancy in yesterday’s report. The simple fact is that the paper is using May 25, 2010 as Day 1 for the Nasdaq composite even though it closed lower on the day. From their perspective, the “essence of Day 1” occurred and that sufficed. It would be very encouraging to see a proper follow-through-day (FTD) emerge for the benchmark S&P 500 and the Dow Jones Industrial Average to confirm yesterday’s strong move. Now that we have a follow-through day, the window is open to begin buying high ranked stocks that trigger new technical buy signals. If you have any further questions on this matter, or would like to discuss your portfolio or the market, please feel free to email: info@sarhancapital.com.
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