The first Friday in each month is often quite volatile, because that is when the most important economic data is released, i.e., the Jobs Report issued by the Department of Labor. The first Friday is coming up.
Economists look forward to this day, so they can gain greater insight in the enigma that is our economy. Investors dread this day, because the market can over-react to a number that is unknowable.
Today, the payroll giant, ADP, released their best guess that March produced only 179 thousand jobs, quite a bit below the 200 thousand that were expected. The stock market was already weak on other economic news, but this really hurt, with the Dow down 83 points. Disappointment will be priced into the futures market at the open. A slight miss below expectations will produce minimal reaction. A slight miss above expectations will produce a nice rally. Let's see . . . of course, there's always next month!
