Wednesday, May 04, 2011
Stock Market Commentary:
Stocks fell for the third consecutive day after ADP released a weaker-than-expected April employment report. From our vantage point, the market rally is under pressure due to the lackluster action in the major averages and so many leading stocks.
ADP Jobs Report Misses Estimates:
On Wednesday, stocks got smacked after ADP, the country’s largest private payrolls company, said U.S. employers added +179,000 in April which missed the Street’s forecast of +198,000. The tech-heavy Nasdaq composite negated its latest breakout and the S&P 500 is currently flirting with its prior chart highs (1344). Looking forward, the next level of support for the major averages and a slew of leading stocks is their respective 50 DMA lines.
Market Outlook- Rally Under Pressure
From our point of view, the market rally is under pressure which suggests caution is paramount at this stage. We would be remiss not to note that a slew of leading stocks suffered heavy distribution earlier this week which is not ideal. If you are looking for specific help navigating this market, please contact us for more information.