Markets Panic On Jobs Data

The markets dropped sharply this morning on the back of the ADP Private Sector Employment numbers. Analysts had expected a solid 190,000 private sector jobs to have been created last month. The number reported today at 8:15pm ET was a meager 38,000. The futures had been slightly higher prior to this number, looking to build on a multi-day rally. However, once the number hit the markets, the futures sold. The selling continued once the markets opened as investors ran for cover. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.59, -1.31 (-0.97%), the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is at $124.05, -1.45 (-1.16%), while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is at $57.88, -0.48 (-0.82%).

The fear striking the markets on the back of the ugly economic data is valid when looking at the big picture. The Federal Reserve’s QE2 policy is coming to a close in June and job creating is still pathetic. The unemployment rate is stuck around 9% and housing is now in a double dip. It appears as if all the printing of money the Federal Reserve has done has had little effect on bringing the economy out of the doldrums. When QE2 actually ends, it is very possible things will start getting much worse again.

About Gareth Soloway 168 Articles


Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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