The markets are floating lower today on the back of continued worries over the economy. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.32, -.55 (-.42%). The ADP Private Sector Employment numbers shocked the markets yesterday and are continuing to weigh today. Investors are hesitant to go long ahead of tomorrows Non Farm Payrolls number and Unemployment Report.
The employment numbers gave Wall Street a major reality check. If employment numbers are that week and QE2 is still going on, what will happen when QE2 finishes later this month? In addition, almost all economic reports have been ugly of late, including housing numbers which show another leg down in motion.
Banks are leading the downside after it was reported that Goldman Sachs Group, Inc. (NYSE:GS) got a subpoena from a New York prosecutor. This sent all bank stocks lower early. Since that point, they have recovered off their lows but with the Dollar starting to spike, commodity stocks are now getting hammered. Chevron Corporation (NYSE:CVX) is trading at $100.48, -2.01 (-1.96%) while Exxon Mobil Corporation (NYSE:XOM) is at $80.79, -1.24 (-1.51%).
The markets will now await tomorrows Non Farm Payrolls Report. Until then, it is unlikely many investors will buy the markets due to uncertainty and fear. Should the Jobs Report come in better than expected tomorrow morning at 8:30am ET, the markets may get a relief rally into the weekend. Should the report come in showing a net loss of jobs, there is significant downside possible over the next week. Tomorrow is a pivotal day.