The stock market is bouncing back off its lows but I’m once again struck by the unmedicated-manic-depressive nature of today’s financial markets. The jobs report, while by no means great, was, in fact well above expectations. But apparently, since it came in below the very unrealistic expectations created by yesterday’s ADP report (unrealistic, that is, unless you read this), traders were disappointed.
If you had insider information yesterday that the jobs report would come in above market expectations, and bought call options accordingly, you’d be out of the money today. Go figure.
Source: Google Finance
Anyway, see here for rational analysis of the jobs report by CBPPs chief economist, Chad Stone.