Morning Report: Job Rocket

(Stocks in this article: NYSE: BCS, NYSE: GM, NYSE: F, NYSE: NYX, NYSE: BA, NYSE: VIA, NYSE: CI, NYSE: DUK, NYSE: MAN, NYSE: PTR, NYSE: ABX)

The bullish October Employment Situation Report will drive shares higher today, at least to start.

1. The reported increase of 166,000 jobs, doubled Bloomberg's economists' consensus forecast for 80,000. This figure has proven unreliable of late, however, it will drive trading today nonetheless. Unemployment measured 4.7%, as expected, and average hourly earnings posted a 0.2% increase, below expected 0.3% and easing inflation worry. We proposed earlier this week that Manpower (NYSE: MAN) could offer some short-term pop, and it gapped open higher on Tuesday after a Citigroup (NYSE: C) analyst upgrade. In today's jobs report, temporary employment was noted up 20,000 in October, a good sign for MAN. This is a stock I like over the short-term on valuation and momentum, but I would not hold for long as unemployment likely rises into next year.


2. The jobs figure is likely to be contradictory for oil, gold and the dollar. It should support the dollar, with less likelihood of rate cuts. In contrast to expectations for dollar/oil negative correlation, oil may have found catalyst for a short-term burst toward $100. Goldilocks enthusiasts will point to economic strength and the potential for near-term supply/demand imbalance as impetus for oil rise. So, I would suggest reversing your PetroChina (NYSE: PTR) and related shorts for now. However, I expect that over the longer term we will still see increasing catalyst for oil price recession. Despite this positive employment figure, most indicators raise red flags for oil. So, while I'll probably look bad today, remember me in a month. I still see dollar strength, OPEC production increase and economic softness (here's where today's data conflicts) driving oil lower over the medium term. I still see oil spiking higher later, when war begins with Iran - I'm looking to sometime next spring for this, unless a trigger is pulled beforehand. Gold should weaken on dollar strength now, and your Barrick Gold (NYSE: ABX) and other gold shorts remain recommended.


3. Despite the likely pop to the market today on the strong jobs report, I want to give readers some ideas for buys to go along with my short recommendations of days past. I would look to today's likely decline in Ultra Short S&P 500 ProShares (NYSE: SDS) as opportunity for purchase. This security seeks to provide the inverse of return seen in the S&P 500 Index, so it's a good hedging tool for your portfolio when you think the market could turn bearish.

Market-Moving News

• Bureau of Labor Statistics: October Nonfarm Payrolls at 166K, Double Consensus Forecast


• CNN Money: Sluggish Job Growth Ahead


• Bloomberg: Global Market Downturn


• DailyFX: What Payrolls May Do for the Dollar


• CNN Money: Oil Inches Higher


• Platts: Chavez Crony Says No Need for OPEC Move


• Economist: Oil Voice of Reason


• USA Today: GM (NYSE: GM), Asian Automakers Post October Gains, Ford (NYSE: F), Chrysler See Sales Dip


• ECONOMIC REPORT: 10:00 September Factory Orders


• Platts: EIA Raises Long-Term Price Forecast


• Yahoo! Earnings Calendar


• AP/Yahoo!: NYSE Euronext (NYSE: NYX) Profit More Than Triples


• Forbes: British Airways (NYSE: BA) Profit Rises 21%


• CNBC: Viacom (NYSE: VIA) Profit Rises


• Bloomberg: Barclays (NYSE: BCS) Dips on Rumors it Approached BOE for Funds


• CNBC: Cigna (NYSE: CI) Profit Rises


• AP/Yahoo!: Duke Energy (NYSE: DUK) Earnings Fall


• Forbes: Ten Steady Stocks


• BBC: Rice in Turkey for Kurdish Talks


• BBC: Georgia Braces for Opposition Protest, Putin's Revenge


• Iran Daily: Tales from the Dark Side

Please support our effort by visiting the site and supporting our advertisers. Receive Wall Street Greek FREE via email by subscribing here. (disclosure)