Expectations were soaring high going into the Unemployment and Non Farm Payroll Report. The ADP Private Sector Employment numbers reported on Wednesday were extremely bullish, coming in at 297,000. The reports this morning were mixed, with Non Farm Payrolls for the month of December increasing just 103,000. However, the Unemployment Rate dropped to 9.4% from 9.8%. The futures dropped sharply after the Non Farm Payrolls came in much lower than expected. The market had hoped for a number above 200,000. However, between the Unemployment Rate dropping and the Dollar falling, the losses were paired and the futures have turned positive. The SPDR S&P 500 ETF (NYSE:SPY) dropped $0.50 on the number this morning, then surged back to postiive territory while the Dollar, which was positive has now turned flat to negative. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $23.25, down $0.04. Remember, a lower Dollar pushes the markets higher. The SPDR Gold Trust (ETF) (NYSE:GLD) is slightly lower while the United States Oil Fund LP (ETF) (NYSE:USO) is slightly higher.
The key areas I am watching today, should the markets stay positive are the solars and the small cap regional banks.