By David Sterman of StreetAuthority
As smoke clears from the Cisco (CSCO) stink bomb, here is a ray of hope: The jobs picture could get much brighter heading into 2011. More jobs means more consumer spending. Best Buy (BBY - Get Report), Winnebago (WGO - Get Report) and Citi Trends (CTRN - Get Report) are quintessential retail picks for an imminent spending rebound.
The fact that 151,000 jobs were created in October is impressive. The fact that August and September jobs numbers were upwardly revised by a collective 110,000 was even more impressive, as it underscores that things were not quite so bleak as had been feared a few months ago.
Could we now be on the cusp of a robust and sustained upturn in jobs? It's too soon to say. Employment numbers for November and December are hard to handicap, especially since most major companies will hold off on any significant changes in hiring until after we are done with 2010.On the other hand, looking into next year, a real case can be made for an improving job picture. Corporations are now flush with cash after a string of highly profitable quarters, existing workers are being pressed to shoulder an unsustainably heavy load, and companies are less likely to fret that we're headed back toward the dreaded "double-dip" recession. All signs point to "help wanted" signs popping up with more frequency next year. My colleague Nathan Slaughter has taken a more in-depth look at the employment picture, and has a pair of intriguing staffing stocks he's getting behind. You also can't forget the retail angle. As employment picks up, new hires will begin to have more cash to spend, which should help retail stocks. Here are three companies that would clearly benefit.