NEW YORK (TheStreet) -- When stocks were sinking week after week right up until mid-June, plenty of comparisons were being made to how 2010 played out with a deep spring-summer swoon finally prompting Federal Reserve Chairman Ben Bernanke to deliver QE2, setting in motion the bull run that lasted well into this year.
The recent strong snapback in stocks has thrown a wrench in that scenario, according to Sam Stovall, chief investment strategist at Standard & Poor's Equity Research, if the comparison was even all that apt in the first place.
"From late April through early July, 2010, the S&P 500 tumbled 16% on similar sovereign debt concerns that contributed to the recent decline," he wrote in commentary on Wednesday. "Yet the drop in share prices from April 29 until mid-June 2011 was less than half as deep, even though it was also accompanied by downwardly revised Q2 GDP estimates as a result of the effects of the Japanese supply disruptions, floods, tornadoes, and generally severe weather in the U.S., along with a decline in bond yields and a topping of commodity prices."
Stovall continued: "[L]ast week's rapid recovery of share prices indicate to us that investors don't want to be left standing on the sidelines should the June payroll report and next week's start of the Q2 EPS reporting season deliver an unexpected surprise."Thursday is all about jobs data, even though the biggest piece of the puzzle won't arrive until Friday in the form of the June employment report from the Labor Department. At 8:30 a.m. ET, Wall Street gets initial jobless claims for the week ended July 2, and continuing claims for the week ended June 25. The consensus estimates are for initial claims of 425,000, and continuing claims of 3.7 million. In other words, no relief in sight. What may get more attention on Thursday is the latest payrolls report from Automatic Data Processing at 7:30 a.m. ET. While it's generally viewed as a less-than-reliable indicator for the federal data that will follow on Friday, the ADP report did pick up some juice last time around when it said only 38,000 jobs were added in May.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV