Emloyment Number Big Disappointment

by Laura Ehrenberg-Chesler on April 5, 2013

in Economic Indicators,Employment,Investment Strategies

The March employment number was just released.  The expectation was +200,000 jobs.  The reality was +88,000.  The labor force participation rate was the lowest since May of 1979.

While January and February were revised upward, this is still a very disappointing number.  The buzz is that maybe the market shrugged off the effects of the sequester too soon.  Futures had an immediate, negative reaction and the market will likely open down over 125 points.

One bad number does not necessarily make for a trend.  However, we also got some soft economic data this week, including the ADP payroll data, and the Institute for Supply management numbers.

We will be watching the charts of restaurant, retail, and housing stocks in the next few weeks and months to see if the positive momentum they have displayed takes a negative turn.  The mixed data we have blogged about over the past few months continues.  The key will be if directionally it stays positive, or gets progressively worse.

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