Markets Break for Jobs

"If payrolls fail to give the dollar a boost tomorrow, we see another leg down for the greenback next week," writes Marc Chandler, currency strategist at Brown Brothers Harriman, and RealMoney.com contributor.

If payrolls fail to boost the dollar, count on another leg down for stocks, too.

Home for the Holidays

After a dramatic surge since the summer lows, the homebuilders party ended (or at least paused) Thursday. Credit Suisse analyst Ivy Zelman published a report titled, "Not So Fast," and downgrading her rating on the stocks to underweight. Zelman says the stocks are overvalued.

The Philadelphia Housing Sector Index slipped 1.1% on the day, while shares of homebuilders such as Meritage(MTH Quote), Ryland(RYL Quote), Hovnanian(HOV Quote), Toll Brothers(TOL Quote), and Pulte Homes(PHM Quote) fell between 2.3% and 3.5%.

Energy stocks also slid, even though crude oil rebounded to close up 0.7% at $62.62 on the day. The Oil Services HOLDRs(OIH Quote) fell 0.9% Thursday, as shares of Halliburton(HAL Quote) and Exxon Mobil(XOM Quote) slid 0.8%.

Among other stocks in the news:

• Home Depot (HD Quote) fell 2.5% after it reported $200 million in unrecorded stock-option expenses over a 25-year period.
• Corning (GLW Quote) reiterated its fourth-quarter outlook but fell 3.8% amid concerns of a glut of LCD panels.
• Eli Lilly (LLY Quote) dipped 1.6% after offering 2007 guidance below consensus, while Vanda Pharmaceutical (VNDA Quote) soared 69% after it said its treatment for schizophrenia was effective in a late-stage clinical trial.
• Hershey (HSY Quote) fell 3.4% after cutting its 2006 outlook, while Apple (AAPL Quote) shed 3.1% amid chatter about a possible delay in the launch of an iPod phone.
• Research In Motion (RIMM Quote) lost 4.9% following downgrades at RBC Capital Markets and Morgan Keegan.