Stocks seen higher ahead of jobs report

no, this is NOT an April Fools joke, unless it was Reuters's joke.

I found this story by searching Google News for "jobs." This match says "one hour ago."

http://news.google.com/news?hl=en&ned=us&q=jobs

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=8060789

Stocks Seen Higher Ahead of Jobs Data

Fri Apr 1, 2005 06:59 AM ET

NEW YORK (Reuters) - U.S. stock futures pointed to a higher market open on Friday ahead of the monthly employment report, which strategists hope will signal moderate job and wage growth, easing inflation and interest-rate worries.

<snip>

The monthly jobs report is due at 8:30 a.m. EST. Economists polled by Reuters forecast that 220,000 new jobs were created in the world's biggest economy last month versus 262,000 in February.

Unemployment is expected to have edged down to 5.3 percent from 5.4 percent in the prior month, while average hourly earnings are expected to have risen 0.2 percent after being flat in February.

"The jobs number is the biggie today," said Tom Hougaard, market strategist at spread betting firm City Index. "A number bang in line is going to be very well received by the market. If we get a much stronger number you are going to feel that the Fed is going to continue with the hiking. One of the main obstacles that the market is trying to overcome is the fear of higher interest rates. In terms of wage inflation, we don't mind a little bit of it but we don't want a lot of it."

More…

Stocks Drop on Service Sector Growth Signs

51 minutes ago Business - AP

By MICHAEL J. MARTINEZ, AP Business Writer

NEW YORK - Signs of strong growth in the service sector spooked investors Friday, pushing stocks lower even as a weaker-than-expected job creation report alluded to a slowing economy that might forestall inflation.

The early release of the Institute for Supply Management's service sector index, which wasn't due until Tuesday, showed greater-than-expected growth in non-manufacturing businesses — worrying skittish investors that inflation might yet take hold and prompt the Federal Reserve to push for potentially jarring interest rate hikes.

That announcement stole momentum from the Labor Department's jobs report, which showed that only 110,000 new jobs were created in March — half of the 220,000 economists had expected. February's figure also was revised lower by 19,000 jobs. The nation's unemployment rate fell to 5.2 percent from 5.4 percent in February.

"We rallied nicely on the jobs report, but then we got a conflicting message from the ISM report. That report doesn't usually carry as much weight, but it hit the bond market hard, and that moved to stocks pretty quickly," said Brian Pears, head equity trader at Victory Capital Management in Cleveland. "In a market where we're really this nervous to begin with, it only takes a little bit to turn things around."

http://story.news.yahoo.com/news?tmpl=story&cid=543&ncid=749&e=3&u=/ap/20050401/ap_on_bi_st_ma_re/wall_street

It's been a while since I paid attention, but I thought that low unemployement is an anathema to industry and hurts the stock market, because we workers can demand higher wages. A rise in unemployement = less upward pressure on wages, and happier companies.

They sure like to be optimistic, without any basis in fact don't they?

either "bang in line" or "much stronger."

"The jobs number is the biggie today," said Tom Hougaard, market strategist at spread betting firm City Index. "A number bang in line is going to be very well received by the market. If we get a much stronger number you are going to feel that the Fed is going to continue with the hiking. One of the main obstacles that the market is trying to overcome is the fear of higher interest rates. In terms of wage inflation, we don't mind a little bit of it but we don't want a lot of it."

What a laff!

And, regardless of the employment figures, rates will rise because of inflation!

on a NEGATIVE jobs report.

I wonder what planet Reuters originates on.

Either that or they're trying to influence sheep who aren't watching the market but slavishly follow Reuters' predictions.

notice the time in the article, this was from this morning and the market did go up at the beginning. Check out the SMW it can give you more detail.

BTW,


Dow Jones Industrial Average
Bush's 2001 inauguration: 10,587.60