The jobs report was much better than expected and that gave the buyers reason to step back into the markets. The question on every financial persons lips today was… ‘are the numbers real, and if so, are they sustainable?’ I can’t say that the question didn’t cross my mind when it was announced. However, you have to take it for what it is and watch to see how to trade the outcome going forward. The end result was a recovery from the selling on Thursday and plenty of questions about next week are in place.
Twitter woke up with a hangover dropping 8% on the day. That isn’t surprising and we won’t know for awhile how it plays out relative to the IPO. Priceline bounced back on solid earnings data gaining 4.7% and a move back towards the previous high. The NASDAQ related stocks had solid day following the selling. All will be reviewed heading into next week.
Banks (KBE) were the winners on the day up 3.2%. Regional banks (KRE) were up 3.9% to lead the sector. There push higher took the financials up 2.2%, but this is quite a reversal from the sentiment over the last three weeks. Without being philosophical about the outlook for the broad sector of financials, it was a much needed bounce to keep the sector in play if the upside is to continue in the broader indexes.
IT’s FRIDAY and that means time to relax and pontificate the outcome of the weeks trading and what to look for next week. Remember the update will be posted tomorrow and the tables updated by Sunday evening. The reversal from Thursday’s selling will put an interesting twist on the charts and the outlook. Have relaxing weekend… you will need it to deal with this paranoid group of stocks and traders.