Friday – Market Collapsing on Disastrous Jobs Number

By Ed Gaynor:

The market is heading decidedly lower with the SDPR S&P 500 (SPY), SPDR Dow Jones Industrial Average (NYSE: DIA) and the PowerShares QQQ (Nasdaq: QQQ) each looking to move down at least 1.0% on the open. The reason is yet another disappointing economic data point, with the Nonfarm Payroll data showing the creation of just 88K jobs in March, decidedly short of economists’ expectations. Have you been reading Wall Street Greek and our columns elsewhere? If you had, you would not be surprised today and you would have been selling the market since the close of March or earlier.

Economic Reports
The Employment Situation Report reached the wire at 8:30 AM ET. The report for March was expected to show nonfarm payrolls increased by 193K, less than February’s 236K. However, Nonfarm Payrolls were reported at just +88K. Private nonfarm payrolls were expected to increase by just 200K this month, versus the 246K increase last month. However, Private Nonfarm Payrolls actually only increased by 95K. The unemployment rate was expected to hold steady at 7.7% according to economists, but it actually improved to 7.6%! Fear not dear readers, as you have not lost your minds. It does not make sense, and we’ll clear it up for you in a forthcoming article. Last month, we saw it closer to 11.8%, and it shouldn’t be improved this month.

Look for the International Trade data at 8:30 AM as well. Economists expect February’s trade gap widened to $44.8 billion from $44.4 billion in January. Exports declined last month versus an increase in import demand.

The Federal Reserve reports on Consumer Credit at 3:00 PM ET. Economists see February’s consumer credit expanding by $15 billion, against January’s expansion of $16.2 billion.

Corporate Events
The corporate wire has the BioCentury Publications Future Leaders in Biotech Industry Conference, with highlighted presentations from Alexza Pharmaceuticals (Nasdaq: ALXA), Cytokinetics (Nasdaq: CYTK), Cytori Therapeutics (Nasdaq: CYTX), Omeros (Nasdaq: OMER), Sucampo Pharmaceuticals (Nasdaq: SCMP) and Navidea Biopharmaceuticals (Nasdaq: NAVB). Radware (Nasdaq: RDWR) is reporting earnings today.

Early Movers include Hewlett-Packard (NYSE: HPQ), F5 Networks (Nasdaq: FFIV), Boeing (NYSE: BA), Chevron (NYSE: CVX), Southwest Airlines (NYSE: LUV), UnitedHealth Group (NYSE: UNH), Walt Disney (NYSE: DIS), Apple (Nasdaq: AAPL), Kimberly-Clark (NYSE: KMB), Hanesbrands (NYSE: HBI), WD-40 (Nasdaq: WDFC), Exide Technologies (Nasdaq: XIDE), Valero Energy (NYSE: VLO) and Rosetta Stone (NYSE: RST).

Overseas Markets

EUROPE	8:40 AM ET	ASIA/PACIFIC	8:40 AM
EURO STOXX 50	-1.7%	NIKKEI 225	+1.6%
German DAX	-2.0%	Hang Seng	-2.7%
CAC 40	-2.0%	S&P/ASX 200	-0.5%
FTSE 100	-1.7%	Korean KOSPI	-1.6%
Greek ASE	-1.0%	BSE India SENSEX	-0.3%

German industrial orders rose more than expected in February, up 2.3%. Japan bonds swung wildly today as stocks charged higher in Japan for the second straight day after the Bank of Japan’s bold easing program announcement. Demand for Japan sent Europe lower.

Commodity Markets (8:40 AM ET)

WTI Crude	-1.0%
Brent Crude	-1.1%
RBOB Gasoline	-0.6%
NYMEX Natural Gas	+0.8%
Gold Spot	+0.6%
Silver Spot	+0.1%
COMEX Copper	-0.5%
CBOT Corn	+0.1%
CBOT Wheat	-0.4%
CBOT Soybeans	-1.1%
ICE Sugar	-0.1%
ICE Cocoa	-0.4%
ICE Orange Juice Conc.	+1.4%
CME Live Cattle	+0.1%

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.