Job Growth or No Job Growth?

Tomorrow’s stock market report will be all about jobs. If the economy continues to create jobs, expect a great day out of the Dow Jones and S&P. If tomorrow’s jobs report shows job losses then watch out! Things could turn decidedly ugly. It will also be important to keep an eye on whether job growth is from permanent jobs or temporary jobs. Census jobs and other temp jobs will not have a long lasting effect on a return to full employment.

Economists are anticipating the US economy to have added about half a million jobs last month. Hopefully private sector job growth will continue its upward trend. Also, keep an eye on the unemployment rate. If it rises to double figures, it could signal a barrage of selling. There really isn’t much difference from 9.9% unemployment and 10% unemployment but the psychological effect could be immense.