It's all about employment and the jobs number this morning is suggesting to the investment community that the recovery is underway, hence the bullish move in the major market averages.
Why the bullishness? How bad do fundamental reports need to be for the markets to react accordingly or is it still that "things are getting worse more slowly" that's driving the bullish trend? I would suggest that the later is driving market sentiment. Yes, there are signs of improvement among business spending and recent data has shown an increase in employment in the service sector and mining, a definite positive when looking for reasons to buy.
Today's Jobs data is indicating a breakdown in government employment across the board. Why? Because government revenue continues to decline due to, yes, unemployment that results in lower income tax revenues. State by State the picture is strikingly familiar as deficits force budget cuts in Cities, Counties and State employment. Interestingly enough, even the Federal Government has experienced a net loss in spite of the 15K new temporary census workers and the fact that the Federal Government can raise the debt ceiling (which by the way is now over 14 trillion dollars). Obama and Crew have been referring to millions of job creation through Government stimulus and to be sure the Census temporary employment is to be 1.2 million - definitely a boost to help the overall weak labor market, temporarily.
Government is not the "fix" for the labor market. The Private sector is the only real fix, yet Washington DC and many State Governments forget this principle of real growth. Washington politics have completely ignored promises made to stimulate job creation among small business and have focused on continued deficit spending on pet projects thinking that if they simply add "Jobs" to spending bills it will pass muster with colleagues and citizens. At some point, the blindfold will be removed.
If the parts of the machine are weak, breaking or broken, then the machine will fail if it hasn't already.
Summary: The overall market trend continues to side with the Bulls, finding reasons to buy. Trade the trend, but do so with skepticism and a hedged hand.