Stock Markets Wait For Jobs Report
The stock market is trading flat again today as all eyes are now on the ADP Private Sector Employment Report tomorrow, and the Non Farm Payrolls Report on Friday. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.93, +0.12 (+0.09%). The markets are shrugging off problems in Portugal and a small rise in the Dollar as the Jobs Report has taken center stage.
While many think the last two days of sideways action are creating a bullish flag pattern for more upside, traders must also pay close attention to one sector that continues to lag. The bank stocks fell sharply yesterday and are again falling today. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $133.32, -1.18 (-0.88%) while JPMorgan Chase & Co. (NYSE:JPM) is trading at $40.53, -0.50 (-1.22%).
While these financial stocks do spell trouble ahead, the tricky thing is to figure out whether or not it is in the short term, meaning in the next week or in the longer term, a month or two away. Ultimately, it is hard to believe the jobs numbers will be that horrible since the government has had a week to smooth them out. If the markets do not break up by Friday, a downside move may be on the horizon next week.