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 Euphoria About Jobs Report Has Already Ebbed

NEW YORK (TheStreet) -- Investor euphoria for February's employment report already may have ebbed.

Stock futures popped and the market spiked Friday morning at the opening bell after nonfarm payrolls for February surged 236,000, up from the prior month's revised 119,000 jobs. Economists were looking for just 160,000.

Less than an hour into the trading session, the S&P 500 and the Nasdaq drifted below the flatline and the Dow Jones Industrial Average challenged its lowest levels of the day.

A robust payrolls number like the one printed Friday morning would typically encourage sizeable gains in equity markets, boosted by the promise of an improving labor market and economy amidst four years of sluggish growth. But Friday saw modest growth of less than 0.5% on the three major indices.

"Once we saw equities start to digest the [jobs] number a little bit more, that's when we started to see equities come off [their highs and] when the bottom was put in on the metals," said Phil Streible, senior commodities broker at RJO Futures. "I think that people are really not buying that number as much -- 236,000 -- and they're really thinking that there will be big revisions down when we come up with this next nonfarm payroll."

Streible was speaking about the precious metals, specifically gold, which had sold off more than $10 an ounce at the Comex division of the New York Mercantile Exchange, but surged back into green territory to settle with slight gains by the afternoon.

Gold investors have closely tracked the monthly unemployment rate since the Federal Reserve said it would peg a policy of low interest rates to the unemployment number until it dropped to at least about 6.5% (or if inflation hit 2.5%).

Despite the upbeat labor report, unemployment still remains more than one percentage point above the Fed's target, and well above pre-recession levels.

"The problem is, we're still a long way from full employment, and at this pace it's going to take many years to get down to a reasonable unemployment rate," Gary Burtless, a labor economist at Brookings Institution, said in an interview.

Economists have called this an uncommon recovery as U.S. gross domestic product, the housing sector, the labor market and other indicators have grown at their slowest pace in any post-recession recovery since World War II.

1 of 3

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!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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