Help Wanted
The jobless started posting their own “Help
Wanted” signs in October, as more workers lost jobs than at any time
since Jimmy Carter was president. Layoffs have been a consistent feature of
economic data all year, but dislocations in the month following the worst
terrorist attack ever on American soil last 9/11 accelerated payroll
cuts.
With the economy headed to its first recession (two
quarters of negative GDP growth) in a decade, the job situation will be a
key determinant of the length and depth of an economic downturn.
Individuals’ employment status has a direct bearing on consumer confidence
and spending, factors which account for more than two-thirds of economic
activity.
The market is clawing its way back for a second day
with the Nasdaq in position to erase losses from earlier in the week and close
flat.
The Nasdaq is up 7.01 at 1753.31, the S&P 500 is
up 2.98 at 1087.08, and the Dow is up 43 at 9301.
Microsoft
(
MSFT |
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PowerRating) has the Street’s attention
again on optimism over settlement of its antitrust case with the Justice
Department. Eighteen complainant states still need to ratify the settlement
or pursue their own cases. Microsoft has rallied $2 off its lows of the
session and is up 1.15 at 62.99.
Home Depot
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HD |
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PowerRating) is the best-performing stock in
the Dow average, up 5% at 40.45.
As Kevin Haggerty pointed out in his View From The
Trading Desk commentary this morning, “Like a broken record,
volatility in the semis ($SOX.X)
is excellent as the Generals play. That is trader’s nirvana, and until it
changes, the semis must remain at the top of your trading plan.” Semiconductors
(
$SOX.X |
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PowerRating) are again the leading sector, up 2%, although the action is
more subdued today than earlier in the week.
Oil services
(
$OSX.X |
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PowerRating) are the session’s
weakest sector, down 3.24% as oil prices collapse to a two-year low. See Friday’s
Setups in the new Nightly Futures Traders Report for an
examination of the implosive fundamental forces at work in the oil patch.