Stocks Slide on Weak Jobs Data
Wednesday, October 6, 2010
Stock Market Commentary:
Stocks spent most of the session in the red after the latest read on the jobs market fell short of estimates. Volume totals were reported lighter on the NYSE and on the Nasdaq exchange compared to Tuesday’s session which signaled that large institutions were not aggressively buying or selling stocks. Decliners led advancers by a modest ratio on the NYSE and on the Nasdaq exchange, while new 52-week highs easily outnumbered new 52-week lows on both exchanges. There were 58 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower from the 86 issues that appeared on the prior session.
Where Are The Jobs?
Stocks fell on Wednesday after ADP, the country’s largest private payrolls company, said employers cut jobs in September for the first time since the January. The report showed that employers slashed -39,000 jobs, after a revised +10,000 increase in August. The report fell short of the Street’s estimate for a gain of 20,000. This was the first in a series of important reports on the fragile jobs market scheduled to be released later this week. Weekly jobless claims are slated to be released before Thursday’s opening bell and the mother of all economic reports, the monthly nonfarm payrolls report, is set to be released before Friday’s open.
Market Action- Confirmed Rally:
So far, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been very strong and stocks are simply pausing to consolidate their recent gains. It was encouraging to see the bulls show up and defend support (formerly resistance) in recent weeks. The next level of support for the major averages is their respective 200-day moving average (DMA) lines while the next level of resistance is their respective April highs. Trade accordingly.
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