While I don't plan to see folks standing in bread lines in the near future, the Government Jobs Report is a big deal. Last month's jobs number sealed the deal for a Fed Funds rate cut, but the report was ugly and continued data like that will be bad for the economy and ultimately bad for stocks. While I really don't know how to trade the results for sure, a better than expected jobs report should help equities in the mid and long term.
Folks on Investor Village know that jobs data is my number one economic indicator. While it is more likely a lagging indicator, it also can have lasting effects. Folks with jobs buy things. Folks without jobs don't. It really is that simple. The American consumer will continue to be in the economic picture as long as the economy is creating jobs at a decent clip. The report's significance Friday morning means that traders will be positioning their portfolios today and tomorrow, so expect some funky price movements like it was option expiration week.
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