Quick Take: Data Pull Stocks From Early Slump
NEW YORK (TheStreet) -- While stocks looked like they would open lower, U.S. economic data were able to save the bulls, although that may be temporary. TheStreet's Jeanne Yurman spoke toh Jonathan Corpina of Meridian Equity Partners about what might happen going into Friday's job report.
Because of today's shortened trading session, ending at 1:00 P.M. EDT, and tomorrow's day off for the Independence Day holiday in the U.S., markets will be trading on much lighter-than-usual volume. Because of the lighter volume, volatility will likely be higher and in an already headline sensitive environment, the markets will be especially on edge from news out of Europe and the Middle East, Corpina said.
Lately we've seen early gains in the day fizzle out by the afternoon session because traders and investors are in a wait-and-see mode. With pending data releases, such as tomorrow's European Central Bank interest rate announcement and Friday's U.S. nonfarm payrolls report, there's no reason to make any big moves going into these events.
He said that Friday's job numbers will likely be in-line with consensus, adding that the government has a way of "working" with the numbers and will likely give us a "pass" on this month's data.
Combined with other economic data points,
Federal Reserve
Chairman Ben Bernanke will be watching corporate earnings and guidance over the next earnings season to gauge when tapering the Fed's stimulus program might be most effective.
While the idea appears to be off the table for now, it is occupying just about every conversation on Wall Street, according to Corpina, who expects a dull reaction on Friday and further revisions in August.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.