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POSITIVE DATA PUTS PRESSURE ON STOCKS - By WSS Research Desk

Jan. 08, 2014 5:03 PM ET
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Long/Short Equity, Portfolio Strategy

Seeking Alpha Analyst Since 2008

Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political, and general opinions by several prestigious news organizations. Currently, Mr. Payne is a contributor to the Fox News Network and Fox Business Network. He also hosts his own radio show on KFIAM 640 every Saturday from 2-4pm PST. Mr. Payne recently released his first book entitled Be Smart Act Fast Get Rich. Our all-star analytical team is called first when the media needs to know. We are regularly featured on several well respected finance-oriented radio and television programs such as Fox, CNBC, BNN, WSJ to name a few and widely recognized in the media as a leaders in the analyst community. In addition, Wall Street Strategies is part of Factset, Jaywalk, and Thomson-Reuters Consensus Estimates. Meet our analysts: Brian Sozzi is an equity research analyst specializing in the softline/hardline goods sectors of the retail industry for Wall Street Strategies Inc. Mr. Sozzi graduated Summa Cum Laude from Dowling College, receiving his Bachelors of Business Administration with a concentration in Finance and Accounting. Routinely sought after as a trusted point of reference for opinions and insight on the global economy and retail sector stock evaluation, Mr. Sozzi is a frequent on air contributor to CNBC, Fox Business Network, and Bloomberg, and is cited regularly by online/print publications that include Forbes, Bloomberg, The Wall Street Journal, Thestreet.com, CBS Marketwatch, Reuters, Seekingalpha, Associated Press, Crain’s NY Business, Fortune, Barron’s, AOL Finance, and the Financial Times. In 2009, Mr. Sozzi became recognized by Starmine as a top-ranked equity research analyst for stocks under coverage in such categories as EPS Estimate Accuracy and Industry Excess Return. David Silver is a Research Analyst for Wall Street Strategies. He is a graduate of Tulane University’s A.B. Freeman School of Business where he received his Bachelor of Science in Management with a dual degree in Finance and Accounting. David actively covers companies in the Transports, Autos, and Beverage sectors. He is routinely invited to appear on business oriented television and radio shows including CNBC, Fox News, Fox Business News, the Business News Network of Canada, WCBS Radio, and the Wall Street Journal Radio. In addition, David has been quoted in major business publications such as the Wall Street Journal, Forbes, Marketwatch, CNN Money, and Autoweek. David Urani is a research analyst with concentrations on the homebuilding, staffing, medical devices, and logistical services industries. Along with providing institutional clients with up-to-date reports of individual stocks within his industry coverage, David assists the rest of the Wall Street Strategies research desk with timely analysis of vital economic data. A graduate of the A.B. Freeman School of Business at Tulane University, David earned a Bachelor of Science in Management while majoring in finance. With prior training experience running small businesses, he has an eye for key fundamentals that keep Companies running efficiently. David’s insight has been featured in several outside sources, including the Fox Business Network, MarketWatch, and SeekingAlpha. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College. Conley Tuner is a Research Analyst with Wall Street Strategies Inc. He is a frequent contributor to a number of media outlets including MarketWatch, Bloomberg, BBC news and Xinhua news. Conley holds a Masters in Business Administration and a Masters in International Affairs from the George Washington University. Jennifer N. Coombs is an Equity Research Analyst at Wall Street Strategies. She previously worked on the buy side as an Associate Equity Research Analyst covering the transportation subsector of the industrials sector at AIG SunAmerica Asset Management Corporation. Jennifer also covered Real Estate Investment Trusts (REITs) and has done broader research for the industrials, financials and consumer sectors. Prior to joining their research department, Jennifer worked as a Trading Assistant for SunAmerica’s index funds. She also worked briefly in the client portfolio management department at Dwight Asset Management Company – a fixed income subsidiary of Goldman Sachs. Jennifer graduated with distinction from Clarkson University where she earned a B.S. in Financial Information Analysis and Political Science, with minors in Economics and Law. Jennifer specialized in international markets, and briefly studied East Asian Economics at Sungkyunkwan University in Seoul, South Korea. Jennifer is currently a member of the New York Society of Security Analysts (NYSSA).

By Carlos Guillen

Quite interestingly, despite rather encouraging economic data out this morning, equity markets are experiencing somewhat of a small selloff, perhaps as signs of an improving economy raise concerns of the Fed doing further tapering sooner rather than later.

The jobs data posted before the open of the stock market has served as yet another indication that the economic backdrop here at home is slowly continuing to improve. According to ADP, non-farm private sector jobs increased during December by 238,000, better than economists' average forecast calling for a 203,000 increase. Also rather encouraging was that non-farm private sector jobs gained in November were actually revised higher from 215,000 to 229,000. This stronger than expected uptick in added jobs is certainly indicative of stronger-than-expected nonfarm jobs this Friday, when the official government jobs data is released.

The data showed that payroll gains were achieved across the board but were predominantly driven by small businesses, which added 108,000 jobs. Large business payrolls increased by 71,000 and medium businesses added 59,000. Not surprisingly, most of the added jobs came from the services sector, which ADP said added 170,000 jobs, but also encouraging was that the goods-producing sector experienced a gain of 69,000 positions. At the moment, economists are predicting that the government's numbers, to be released this Friday, will show that private sector businesses added 198,000 jobs in December and that the unemployment rate likely declined from 7.1 to 7.0 percent.

Clearly, the phenomenal numbers from the trade deficit data presented yesterday and the better-than-expected jobs numbers shown today are strengthening the case for further tapering of the Federal Reserve's bond-buying program, which boosted equities last year. Ironically, stocks are trading lower, with the Dow Jones Industrial Average currently down over 70 points. Nonetheless, with signs that the economy is improving, stocks should move higher from a longer term perspective. Shortly we will get a glimpse at the minutes from the Fed's December 18 meeting, when the central bank decided to slightly taper its bond-buying program. As such, we can expect further volatility.

https://www.wstreet.com/user/register.asp?source=3

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