Market Surges on Jobs Report

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US stock futures are on the rise this morning after better-than-expected job gain. The US economy added 114,000 jobs in September versus estimates of 110,000. Perhaps even more notably, employment gains for August and July were revised higher by a combined 86,000. The unemployment rate, which was expected to tick up from 8.1% to 8.2%, actually fell all the way to 7.8%, its lowest level since September 2009.

Today's gap up will add some conviction to the upside break out of the wedge pattern we have been highlighting over the past week. The action has been choppy during this range-bound pattern, frustrating traders, but it now appears the rally is set to resume and 52-week highs will likely be tested at some stage. The price action during today's session will play a big part in how quickly that happens. Yesterday, although the S&P was not able to gain the momentum we like to see on a pattern breakout, holding above the 1460 level was constructive.

The slide continues for Hewlett-Packard (HPQ) this morning as the company starts to look more and more like a tech dinosaur. Older tech companies like Intel (INTC) and IBM (IBM) have been able to adapt to the changing landscape, but HPQ continues to struggle. Many notable pundits have come out in recent days with bearish calls on the stock.

As usual, eyes will be trained on Apple (AAPL) for clues on market direction. The stock bounced nicely off its 50-day MA on Tuesday, but was lackluster yesterday in an up market. Traders will be looking to see if AAPL can charge back toward the $700 area, or whether the hype around the iPhone 5 has been significant enough that an even deeper correction is in the offing.

Google (GOOG) is the real star right now in the tech space, making another new all-time high yesterday. It's hard to chase GOOG at these levels after such a monster run, but I would not try to short this stock. Wait for a more calculated buy set-up in this one.

Zynga's (ZNGA) fiasco continues as the stock is down 20% this morning following another dismal earnings report. Leading up to the Facebook (FB) IPO, many were hyping ZNGA to climb to the $20 area. Now, ZNGA is trading at $2.25 and has an uncertain future.

Speaking of Facebook, the stock is down 2% this morning perhaps on the ZNGA sell-off. The stock opened higher yesterday after announcing its 1 billionth user, but puked all of those gains before rallying back to a small gain in the afternoon. This stock looks like it needs more time.

GS came out and raised 2013 S&P projections to about 1575. These are the projections we talked about a few months back in the media. It would have been nice for them to be bullish in August around 1375 vs. today at basically 100 handles higher.

*DISCLOSURES: Scott Redler is long LNKD, XHB, JPM, SLV, WMT. Short SPY.

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