This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Initial Jobless Claims, QE3, Bruised Banks

Stocks in this article: BAC AA MOV OWW

NEW YORK ( TheStreet) -- The bad economic news finally got to be too much on Wednesday, and stocks suffered a sweeping pullback.

The odds are slightly in favor of more selling on Thursday, given the depth of the weakness. Data from Biryani Associates finds there's a 55% probability of a down day for the S&P 500 after a decline of more than 2% in the previous session with the average loss running at about 20 basis points.

The big question for the rest of the week now is: Was the selling deep enough to price in what now seems likely to be a truly ugly nonfarm payrolls report on Friday, insulating traders somewhat through the end of this holiday-shortened week.

The expectations for Friday's report starting to coming down almost immediately. Examples include Standard & Poor's economists bringing their estimate down to a rise in nonfarm payrolls of 125,000 (vs. the pre-ADP consensus of 170,000), and High Frequency Economics putting the number at 75,000. Ouch.

Thursday's economic data will provide more clues about the state of the flagging recovery. At 8:30 a.m. ET, Wall Street gets to parse initial claims for week ended May 28 (consensus 413,000, according to Briefing.com), as well as continuing claims for week ended May 21.

Also providing more fodder for the debate about whether this patch of bad data is a blip related to the Japan earthquake in March or signs of a real slowdown will be factory orders for April. The consensus is expecting decline of 1%, but Briefing.com sees a drop of 2% when the number is released at 10:00 a.m. ET. High Frequency Economics Chief U.S. Economist Ian Shepherdson sides with Briefing.com, saying the steep drop in durable goods orders telegraphed the 2% tumble.

Other data includes the revision of nonfarm productivity and labor costs for the first quarter at 8:30 a.m. ET, which isn't likely to move the needle much, and crude inventories for the week ended May 28 at 11:00 a.m. ET, where weak demand from the U.S. has already been anticipated.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs