For a brief moment, the stock market liked the jobs report. I can't remember the last time the stock market reacted positively, however briefly, to a bad jobs report since this train wreck started. But that's what happened for a few minutes of trade after the opening bell today.
Eugenio J. Alemán, senior economist at Wells Fargo Economics, sent out the following instant analysis acknowledging the stock market's initial jump in reaction to the jobs report (its since gone back to its regularly scheduled slump), though he's deeply skeptical. Take it away, Mr. Alemán:
The initial market reaction to the employment and unemployment numbers seems to have been “positive” in the sense that markets were probably expecting an accelerating rate of job losses, that is, a number higher in December than the one in November. However, this did not happen...the markets seem to have concluded that while in bad shape, the economy is not deteriorating at a much faster pace than during previous months...
Alemán doesn't use the "I" word (inflection point)...
..but I will.
The market might have briefly considered the possibility, however slim, that we're approaching or that we've hit a transition from an accelerating to a decelerating rate of implosion (or maybe it was just a speed bumb). Again, since that brief perk-up, the market has headed south again, so maybe it was just passing gas. Things that make you go hmmm...
