Big Money expecting a Rebound on Wed-Thurs ahead of Big Numbers on Friday.
Instead of consistantly losing jobs, the US Job market is expected to generate over 1/2 Million Jobs on Friday.
Economists expect the US economy generated about 540,000 jobs in May-a large portion of which expected to come from Census hiring-and many analysts will be hoping that's enough to assuage investor fears that the European debt contagion could cause a double-dip recession.
"The market's just looking for affirmation that the economy here is still growing. That's the biggest concern," says Gary Flam, portfolio manager at Bel Air Investment Advisors in Los Angeles. "If the economy continues to grow and this is just a normal correction, the market will continue to grow. But if Europe drags down our economy, some more dour outcomes can be envisioned."
The markets have reacted violently over the past six weeks to fear that Europe's problems could become US problems. Major averages have sold off a shade more than 10 percent from the most recent high, putting stocks in correction territory.
But Tuesday's manufacturing numbers show how far a little good news can go: Futures indicated the Dow would sell off more than 100 points off the open, but stocks had a relatively strong session.
A strong print on the jobs number, then, could head the correction off at the pass.
"Solid job growth is going to make a huge difference this year," says Kurt Karl, chief US economist at Swiss Re in New York."We should get about 200,000 a month. It's not a gigantic number but it will be enough to sustain this recovery."