Jamie Dlugosch

Market Doesn't Capitulate Under Jobs Report

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A few company specific news of note: On a down day Apollo Group (APOL) bested expectations and the stock gained over 10% to $85.27; Rambus (RMBS) lost nearly 40% of its value as a court ruled against the company in a dispute with Micron – the ruling appears to be a technicality that may potentially be overruled; homebuilder, Lennar (LEN) lost nearly 20% of is value on claims from fraud expect, Barry Menkow suggesting that the company was engrossed in fraudulent activity – it takes one to know one I guess.

It was relatively quiet over the weekend. Global stocks were mostly lower over night. Hong Kong was down nearly 3% while Japan was closed for a holiday. South Korea was down over 2%. In Europe, stocks opened fractionally lower.

Earnings season kicks off in earnest this week with Alcoa (AA) releasing its results after the bell today. With most publicly traded companies reporting results between now and early February the next four weeks will be telling.

One thing for sure, results will be poor. I doubt the market cares about the fourth quarter and in fact would rather avoid the whole topic altogether. Instead, the attention will be on guidance for the future.

I also suspect a plethora of job cuts announced will be negative for traders in the short term. Look for stock back buybacks as being more bullish than usually. In those cases buy the stock and ride the coattails.