Wall Street Greek

Editor's Picks | Energy | Market Outlook | Gold | Real Estate | Stocks | Politics
Wall Street, Greek

The Wall Street Greek blog is the sexy & syndicated financial securities markets publication of former Senior Equity Analyst Markos N. Kaminis. Our stock market blog reaches reputable publishers & private networks and is an unbiased, independent Wall Street research resource on the economy, stocks, gold & currency, energy & oil, real estate and more. Wall Street & Greece should be as honest, dependable and passionate as The Greek.


Seeking Alpha

Friday, March 06, 2015

FRIDAY’S MARKET – Good Jobs News is Bad Market News

buy and sell
This day will without a doubt be dictated by the most important economic report in terms of market following. The monthly Employment Situation Report certainly deserves the attention today, as it came in astoundingly strong in a period that could have easily shown weakness on bad weather. Nonfarm payrolls and the unemployment rate improved far beyond expectations, which is good news about the American economy. However, that is bad news for investors, because it seems to push the U.S. Federal Reserve closer to interest rate hikes. We cover the market daily at our stock market blog at a level unmatched.

blogger
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Sector Security
3-5-15
YTD
TTM
Vanguard S&P 500 (NYSE: VOO)
+0.1%
2.5%
14.1%
iShares Dow Jones (NYSE: IYY)
+0.2%
2.8%
13.1%
Fidelity NASDAQ  ETF (Nasdaq: ONEQ)
+0.4%
6.0%
15.8%
ProShares Ultra Gold (NYSE: UGL)
-0.2%
1.3%
-23.9%
ProShares Ultra Real Estate (NYSE: URE)
+0.6%
2.1%
39.3%
ProShares Ultra Oil (NYSE: UCO)
-2.1%
-14.4%
-75.5%
WisdomTree US$  Bullish (NYSE: USDU)
+0.4%
3.3%
15.0%
iShares 20+ Yr. Treasury (NYSE: TLT)
-0.1%
-0.4
21.9%

Economic Report Schedule


Economists and market strategists alike will be focused on one data point Friday. The most widely followed economic report has been released, the monthly Employment Situation Report. It was better than expected for the month of February, but remember, good news is bad news now because of how it affects the Fed’s rate plans.

Nonfarm Payrolls showed job creation of 295K for the frigid month, far better than what was expected at 230K. Though January’s payroll figure was revised lower to 239K; December was unchanged above 300K. Private nonfarm payrolls also beat expectations, marking 288K jobs created versus expectations for 225K. Again the prior month was revised lower to 237K. The unemployment rate improved to 5.5%, where economists thought it would improve to 5.6%, from January’s 5.7%. Labor force participation deteriorated, though, so there will be the usual debate about whether the unemployment rate really tells the story.

Nonetheless, the jobs data was clearly positive, where a negative report could have been blamed on the weather. While revisions may later come, today investors have to contend with the fact that the economy appears to be doing better than expected. That means the Federal Reserve could be backed into a corner and forced to raise interest rates sooner than even they might like to, given recent dollar muscle building. As a result of the super strong report, stock futures moved lower before the open and it looks like the SPDR S&P 500 (NYSE: SPY) will have a slow start to the day.

ECONOMIC REPORT SCHEDULE

Economic Data Point
Prior
Expected
Actual
FRIDAY






-Nonfarm Payrolls
239K*
230K
295K
-Private Payrolls
237K*
225K
288K
-Unemployment Rate
5.7%
5.6%
5.5%
$-45.6 B*
$-41.8 B
$-41.8 B
$14.8 B
$15.0 B
3 PM ET
 *Revised

EPS Report Schedule


Apple (Nasdaq: AAPL) is being added to the Dow Jones Industrial average, which I see as a positive for Apple and the Dow. For Apple, funds that track the Dow must now buy Apple, and so the stock rose 1.6% to start the day. The Dow, and the SPDR Dow Jones (NYSE: DIA) benefit because it is a price-weighted index, and Apple is sure to move the index with its superior price action to the company it replaces, AT&T (NYSE: T). The earnings day includes Staples (Nasdaq: SPLS) and Big Lots (NYSE: BIG).

HIGHLIGHTED EPS REPORTS
Company
Ticker
FRIDAY

Big Lots
NYSE: BIG
Cheetah Mobile
Nasdaq: CMCM
Chimerix
Nasdaq: CMRX
Foot Locker
NYSE: FL
Furmanite
NYSE: FRM
Global Sources
Nasdaq: GSOL
Gramercy Property Trust
NYSE: GPT
KVH Industries
Nasdaq: KVHI
Monroe Capital
Nasdaq: MRCC
New Home Co.
Nasdaq: NWHM
Noah Holdings
Nasdaq: NOAH
OFS Capital
NYSE: OFS
Southcross Energy Partners
NYSE: SXE
Staples
Nasdaq: SPLS
Tribune Media
Nasdaq: TRCO
Vantage Drilling
NYSE: VTG
Verso
NYSE: VRS

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

sports news blog

Labels: , , , , , ,

free email financial newsletter Bookmark and Share

0 Comments:

Post a Comment

<< Home