Stocks Up For The Week As Jobs Market Improves  Image: Bigstock Stocks closed higher on Friday and for the week. That makes it 2 up weeks in a row for the Dow, 2 weeks in a row for the S&P, 3 weeks in a row for the Nasdaq, and 2 weeks in a row for the Russell 2000. Friday's Employment Situation report, even though it came in a bit under expectations at 559,000 new jobs (492K in the private sector and 67K in the public), vs. the consensus for 650,000 (625K in the private sector and 25K in the public), traders cheered the news. For one, the 559K is better than last month's originally reported 266K (which was upwardly revised to 278K). But the spin is that while the jobs market is improving, it's not so hot whereas the Fed could be forced step in and cool things down prematurely (that includes a rise in rates or an earlier than expected taper in bond purchases). Granted, many believe hiring is being hampered by the enhanced unemployment benefits where some are getting paid more to not work than going back to work. A total of 25 states have already made changes, or are in the process of making changes, to those benefits. But those changes have not all kicked in yet. As they do, however, hiring should see a noticeable pick up. Nonetheless, for now, the report was not too hot, and not too cold. For now, it seemed to be just right. The report also showed the unemployment rate tick down from 6.1% to 5.8% vs. views for 5.9%. Although, the participation rate ticked down as well from 61.7% to 61.6% vs. views for an uptick to 61.8%. This week, expect to hear more about the infrastructure package, and the tax hikes to go along with it. In the meantime, stocks are within striking distance of their all-time highs. And as the economy opens up, and the economic rebound continues, stocks look poised for an upside breakout. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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