There is nothing like writing about the economy and financial markets to humble you (although I don't think most pundits notice). On Wednesday morning, I suggested that "ADP's [new jobs] number is close enough to expectations that the Bureau of Labor Statistics's Friday nonfarm-payroll report is unlikely to surprise and spark a big move in the stock market."

Sure enough, today's Bureau of Labor Statistics employment report showed a surprise drop in the unemployment rate to 7.8% (the rate had held pretty steady between 8.1% and 8.3% through August). As of10:20 a.m. EDT, the Dow Jones Industrial Average (INDEX: ^DJI) is up 0.53%, and the S&P 500 (INDEX: ^GSPC) is up 0.56% -- largely, I suspect, on this news. While that may not qualify as a "big move," I think the news will be enough to sustain investors' enthusiasm throughout the day.

The employment data was too much for some people to take in. Former General Electric CEO Jack Welch tweeted: "Unbelievable jobs numbers..these Chicago guys will do anything..can't debate so change numbers." I'm not sure that kind of carefully considered opinion will burnish his reputation as a business leader.


Claim your investing edge
For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, you need to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.

The article Dow: The Jobs Report Rally originally appeared on Fool.com.

Alex Dumortier, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum