This Day On The Street
Continue to site
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

Market Preview: Big Gain Hangover

Charles Biderman, TrimTabs' CEO, wonders whether the decidedly positive turn in the employment data just as an election year begins isn't politically motivated, calling the numbers from the BLS "suspiciously high."

"Actual jobs outstanding, not seasonally adjusted, are down 2.9 million over the past two months," Biderman says. "It is only after seasonal adjustments -- made at the sole discretion of the Bureau of Labor Statistics economists -- that 2.9 million fewer jobs gets translated into 446,000 new seasonally adjusted jobs."

He continued: "No one I know has any idea how the BLS does its seasonal adjustments. The BLS revises historic data every month for several months until actual payroll data is used to benchmark the BLS data almost a year in arrears. In other words, the BLS currently has accurate data for March 2011 and before."

Either way, be on the lookout for a potential big gain hangover on Monday.

So far this year, the Dow is up 5.3%, its best start to a year since 1997. The S&P 500 is up 6.9% in 2012, its fastest jump out of the gate since 1987 (although that didn't turn out so well). The Nasdaq Composite has surged an incredible 11.5%, pushing the index to heights unseen in more than a decade.

FactSet Research offered up some analysis on Friday of why stocks seem to be getting a pass on a ho-hum earnings season (excluding Apple (AAPL - Get Report)), saying that the buy side is slowing getting more optimistic about 2012 as a whole.

"Looking at bottoms-up EPS estimates for the index, analysts are calling for a drop in earnings in Q1 2012 relative to Q4 2011," the firm said in commentary on Friday. "But after Q1 2012, earnings are projected to continue to increase for the remainder of 2012. It is also interesting to note that while the bottoms-up EPS estimates for Q1 2012 through Q3 2012 have recorded declines since December 31, the bottoms-up EPS estimate for Q4 2012 has remained unchanged during this time frame."
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RSH $0.31 12.76%
AAPL $93.64 0.00%
AMZN $683.85 0.00%
BBY $32.27 0.00%
NFLX $93.11 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs