NEW YORK (TheStreet) -- The threat of a significant market correction is expected to fade next week as investors anticipate data confirming continued improvements in the U.S. labor market.
Employment trends will be a focal point for the week. This first read on the labor market will come on Wednesday, when Automatic Data Processing releases its report on private-sector jobs for February. Analysts polled by Thomson Reuters expect ADP to report that companies added 200,000 jobs during the month, after an addition of 170,000 in January.
The Labor Department will follow up on Thursday with its weekly read on jobless claims. The number of Americans filing for first-time unemployment benefits is expected to fall to 350,000 from 351,000, according to an estimate from Thomson Reuters,.
The week's employment data will wrap up on Friday with the government's nonfarm payrolls report, which is expected to show continued growth, albeit at a slightly slower pace of 210,000 compared with an increase of 243,000 the preceding month.
Bears believe that Middle East tensions and the spike in crude oil and gasoline prices, as well as a potential hard-landing in emerging market growth economies, could lead to a much more severe correction in the markets. However, Orlando and Michael Gayed, chief investment strategist at Pension Partners, see these views as flawed. "I think the bears are just talking their books, hoping investors will sell and knock the market down 10% so that the 'hedgies' can put money to work at better prices," warns Orlando.
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