The stock market didn't know what to make of today's job report. The gain in the nonfarm payrolls was a big disappointment but the unemployment rate surprisingly dropped to 9.4% versus 9.7% expected. 

The big picture appears to have improved but still looks a little muddled. The day's main market moving event turned out to be the unfavorable court rulings against the banks (WFC and USB) on two foreclosure cases. The financials took a dive late in the morning and took the major indexes with them. The DJIA was down nearly 100 points before dip buyers went to work. A slow but steady rise in the afternoon took the major indexes way off their lows at the close. The DJIA finished down 22.55 points (-0.19%) at 11674.76. The S&P 500 fell 2.35 points (-0.18%) to 1271.50 while the NASDAQ gave up 6.72 points (-0.25%) to 2703.17.

  

Breadth finished in negative ground while volume stayed low despite an eventful day. Decliners outnumbered advancers by a 17 to 13 ratio on the NYSE and by a 8 to 5 ratio on the NASDAQ. About 60% of the volume was on the downside on the NYSE while nearly 65% of the volume was down on the NASDAQ. With the dollar index continuing to strengthen, crude oil extended its loss to a fourth session. The February crude slid $0.35 to $88.03 per barrel.

  

The job report turned out to be a nonevent at the end of the day. Buyers were quick to jump in and the bulls didn't give up much momentum. Technically, the short term MACDs of the major indexes were all slightly lower today. But until we see some conviction from the bears, don't be too fast to short. The miss in the nonfarm payrolls is likely to be forgotten by the market quickly as the attention turns to earnings. The earnings season starts with AA reporting on Monday, followed by INTC on Thursday and JPM on Friday.

  

by Yin Lin, CFA