Stock Market Read - Sink or Swim on the Jobs Report?

Stocks are likely to mostly slip in early trading Friday after a strong monthly jobs report was published. Positive economic data signals lead investor expectations toward a Fed rate action for December, which while perhaps appropriate is still unsavory for most companies and for good reason. Fear not, though, as this early indicator only has so much punch. Given the fact that the Fed December meeting is still a ways away, and given the seasonal influence of capital flows, I expect stocks to bounce back. I’m looking at the $208 level on the SPDR S&P 500 (NYSE: SPY) as a test point for any declne Friday, and that is where I expect stocks should stabilize and bounce back from. Keep in mind that the important financial sector mostly benefits from higher interest rates and acts as a counterbalance to other equity softness, limiting today’s impact. Also remember that a strong economy justifies higher interest rates and is the best of all long-term drivers for stocks. Though, until the December Fed meeting today’s data point places a cap on the stock market’s upside potential. Keep in mind that more data (economic and other) will follow that could change the dynamics. See the full report on the stock market here.

Market Sectors & Specific Issues	11-06-15 Early Trade
SPDR S&P 500 (NYSE: SPY)	-0.1%
SPDR Dow Jones (NYSE: DIA)	+0.2%
PowerShares QQQ (Nasdaq: QQQ)	-0.1%
iShares Russell 2000 (NYSE: IWM)	-0.2%
Financial Select Sector SPDR (NYSE: XLF)	+1.7%
PowerShares DB US Dollar Bullish (NYSE: UUP)	+1.2%
iShares Nasdaq Biotech (Nasdaq: IBB)	-0.4%

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