US stock futures initially slid lower this morning after the non-farm payrolls number came in at 203,000, above the 185,000 job adds expected by Wall Street, but is now catching a little bit of a bid. The unemployment rate, which was expected to drop to 7.2%, fell all the way to 7.0%. While the 203,000 number represents a decent premium over the stated expectations, bullishness over the number had increased significantly this week after very strong ISM, GDP and jobless claims numbers. The number is leading to further speculation about potential December tapering of QE, but the chorus is not quite as loud as it would have been if we had gotten the blowout number some were expecting.
World market started to find some footing overnight after some corrective action this week. Most of Europe is up about a half a percent while Asia is mixed with the Nikkei bouncing back 0.71% and the Shanghai is down 0.04%.
The S&P has corrected about 33 handles from the 1813 high down to yesterday’s low of 1779. We’ve been trained for much is this year to buy this type of dip, now we will see if this was enought of a pull-back. With uber-dove Janet Yellen now running the show at the Fed, I still do not think we will get December tapering on the heels of this number, but I will let the price action dictate my trading decisions for the rest of the year.
Disclosure: Scott Redler is long FB, BTU, WLT, LNKD, TSLA TWTR. Short SPY.