Investing Adventures

Thursday, October 4, 2007

September’s Jobs Report Out on Friday

Filed under: Market Pulse — Jorge @ 4:20 am

Friday will bring investors a jobs report. If you remember from the last report, August saw jobs fall by 4,000 while the market expected a modest gain. That jobs report helped fuel the 50 basis point cut in both the federal and discount interest rates. Tomorrow brings September’s jobs report. Here’s my question. If the jobs report comes back with another decline, will the market sell off or will the market rally as the hopes for another Fed rate cut increases? But what happens if the jobs report comes back with strength? Does the market sell off since the probability of a rate cut decreases or does the market rally due to the economy perhaps showing some strength? Thoughts?

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