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Waiting on Labor Data

CSCO beat the street to finish an earnings season that shows a Corporate America generating profits.  Profits are good, but can they translate into jobs? This is the question of the decade.

ADP data show a negative 22K in the private sector job market. In order for this economy to find any real strength in an economic recovery the private sector needs to add jobs on a consistent basis.  A positive to consider to the ADP numbers is that the data released does show things are getting worse more slowly.

ISM service numbers did not meet expectation and with Corporate America primarily service oriented you have to consider the downside to these numbers and put them in context with ISM manufacturing data that exceeded expectation.  ISM service numbers should be weighted heavily in your economic recovery formula.

Other events to consider include the potential negative impact on banking as Italy confiscates Bank of America assets based on fraud for misusing government aid.  Earnings from CSCO and V beat expectation and a real positive from CSCO is their projections include 2K new jobs over the next couple of quarters.

The markets are positioning for labor numbers on Friday.  Today's mixed to bearish day reflects the normal ebb and flow as some profits are booked before a major event and after a couple of nice positive trading sessions.

Summary:  The current correction of a bull market remains intact, market values are hovering at benchmarks earlier defined as the investment community decides if selling or buying on the news should occur.

Disclosure: no posiitons