Leading stock exchanges trading in New York closed with sharp declines. Decline in NASDAQ – the sharpest since June 2012; Dow Jones fell by 1%, Google, Facebook and Yahoo plunged more than 4%.
192 thousand new jobs were added to the American economy, although the unemployment rate remained unchanged at 6.7%. According to figures published two days ago by the U.S. Labor Department. All that happened or was partly influenced by the fact that the results were lower than most analysts’ forecasts expecting an addition of 200 thousand new jobs.
Add to that the fact that the U.S. unemployment rate was expected to be reduced to 6.6%. Interesting that some numbers were actually ignored by the public as the February figures were revised upwards to 197 thousand new jobs from 175 thousand which was the originally reported figure. January’s figures too were revised upwards to 144 thousand, adding 14 thousand to an original figure of 129 thousand.
It also appears that one Cent has created a mayhem while everyone was convinced that the life in the US is heading back to the better times as the AHW (average hourly wage) fell one cent to -24.30 dollars following several months of increases. But, on the other hand, the average workweek expanded by 0.2 hours to 34.5 hours, as it was at the record level before the recession.
All this tells me that after the drops of Friday the market will gain on Monday as the smart corporate brokers will advise their clients to buy early on Monday while rates are low as the result of panic without a reason. In simple words…. The market will go bullish till middle of the week.