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Where is the Floor?

How much of a floor is there under the market? Nonfarm payrolls for September, at a loss of 263,000 jobs, was worse than the loss of 175,000 expected. The declines were across all industries, and -perhaps most disappointingly- average hourly earnings edged up just 0.1 percent. Average weekly hours fell 0.1 percent, matching the lowest level in decades.

Bonds and the dollar rallied on the flight to safety trade.

Predictably, the talk on trading floors this morning is that equities have gotten ahead of themselves.

The old closing high for the S&P 500 was 1071...a 10 percent correction would bring us to 965 or so...we are already half way there.

But remember...there is a floor under the market. Most traders will not wait for that 10 percent correction. Traders are looking at 1000 as a support level. They are looking to get in at lower prices.

Elsewhere:

1) Walgreen is up 1.5 percent after reporting a stronger-than-expected 5.3 percent rise in September same-store sales rose. Pharmacy same-store sales rose 7 percent on a strong 12 percent rise in prescription sales. The drug store's general merchandise comp.-store sales also rose more than expected, gaining 2.0 percent in the quarter.

2) Accenture falls 1 percent after issuing a disappointing outlook. While its Q4 earnings were inline with estimates, the consulting and IT services firm sees full-year revenues and earnings to fall below current estimates. CFO Pam Craig expects the first half of the fiscal year to remain "challenging," but predicts improvements in the second half "even though it is still an uncertain and unpredictable time."

The company also raised its quarterly dividend 50 percent to $0.75 per share.

3) Wells Fargo down 2.5 percent, in addition to general market weakness KBW cut third quarter earnings estimates by 2 cents to $0.36.

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