A late Thursday bid is seeing some prescient and relief-felt follow-through following Friday's better-than-expected jobs data. In front of the Opening Bell, the S&P500 (SPY) is up 0.35% and further confirming a somewhat difficult-to-handle and not-so-simple four day corrective schnitzel.
Following Thursday's last minute buying spree possibly induced by the bullish discounters, ever-fearful optimists worried of missing out, a leak or just plain ol' short-covering; Friday's jobs report appears to be offering some additional relief.
After staging a momentary lapse of judgment i.e. post-release volatility, which took a firm pre-market bid into negative territory only to quickly reverse right back up where some prescient "early bulls" had bid futures heading into the report; headlines can happily exclaim "Wall Street Rallies on Jobs Data."
In truth, following weak ADP and claims data this week, traders were likely bracing for weaker-than-forecast results from today's closely-watched jobs data. On that note, further monthly confirmation the jobless recovery is nonetheless "trending in the right direction" is finding "some" interest in front of the Opening Bell.
As for the actual data nuggets of interest, nonfarm payrolls saw a decline of "just" -215,000 versus estimates of -225,000 and continued to improve upon July's reading of -247,000 and June's slight upward revision and much steeper count in excess of 460,000.
Of secondary interest and slightly less pleasant, unemployment climbed to 9.7%, it's highest since 1983. That data also missed views of 9.5% but is managing to move in the right direction; well, for a Wall & Main that's still bracing for a double digit jobless rate before all is said and done.
In corporate confessionals, there aren't any real market movers of notice to close out the week. However, a few growth stock bulls look to be breathing a bit easier. In a landscape filled with difficult breakouts, ArcSight (ARST), a provider of security software solutions, is bid following its better-than-expected results. Technically, shares are below a "proper buy point" of 20.90 within an eight week base.
Last night ArcSight announced earnings of $0.09, beating views by a penny on a slightly better-than-expected sales jump of 24.9% from last year. For Q2 management reaffirmed its in-line profit range of $0.10 - $0.14, while pegging its revenues above consensus forecasts of $38.4M with an estimated range of $38.5 - $42.5M.
Option bulls using rich premiums to their advantage also have a reason to celebrate. One such ratio spread involving a 20 / 22.50 1 x 2 was discussed on Tuesday at Investors.com for readers interested in some extra homework.
Too boot but not given the boot, with shares of ARST up about 2% to 3% in front of the open, continued conviction by bullish stock traders will mean "gun-slinging" put sellers, which are actually the close brethren of the "conservative" buy-write school of trade-will be looking all the better for their gumption as well. Have a great "three and three-quarter day" holiday observance.
Chris Tyler
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
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The information offered here is based upon Christopher Tyler's observations and strictly intended for educational purposes only, the use of which is the responsibility of the individual.
