NEW YORK (TheStreet) -- The U.S. economy added far more jobs than economists hoped in April. But investors on StockTwits.com said Friday that the beat isn't bullish for stocks. In fact, the jobs report hardly matters anymore.
the market doesn't care about your over hyped jobs report or your miserable little life. We see- Neo (@Loyola80) May. 2 at 11:08 AM
Stocks didn't hold gains after the bullish report. The S&P 500, Nasdaq and Dow each hovered near flat or edged lower by midday.
Blow out jobs number and the market sells off.... Tells you everything you need to know about "news." It doesn't matter.- Robert Lesnicki (@TraderRL23) May. 2 at 10:55 AM
The reason for the lack of reaction, some investors argue, is that the jobs report is an unreliable indicator of economic strength. Take today's report, for example. The Bureau of Labor Statistics announced that the economy added 288,000 jobs in April. That helped drive down the unemployment rate to 6.3%, the lowest level since September 2008.
On the surface, those results seem bullish for the underlying economy. But drilling into the numbers reveals reasons for concern. Some of the unemployment decline was due to people dropping out of the labor force. The labor force participation rate fell by 0.4 percentage points to 62.8 in April. About 806,000 people dropped out of the civilian labor force altogether last month.