Data from payrolls processor ADP showed U.S. private hiring increased by more than double expectations. “Could we see that same thing on Friday? There’s a lot of speculation out there that we could,” says Najarian. “Could it be 200K, sure it could,”
"If tomorrow's (jobs) report follows through on today's positive ADP report and comes in above 125,000, that could be enough to push equity markets through the top end of the trading range," adds Michael Sheldon, chief market strategist at RDM Financial in a Reuters interview.
Trader Steve Grasso also thinks the market will flirt with its 2011 high again, but he believes rhetoric coming out of DC about the debt ceiling will be the catalyst. “If we get signs of resolution sooner rather than later, I think market rips up to 1361 - 1363,” he says.
Trader Patty Edwards is also a buyer of the market even at current levels. “I’m fully invested,” she admits, “but if I wasn’t in – I would be buying. I think the rally will go farther.”
Trader Zach Karabell is the only voice of caution. Although he's a bull long term, in the short-term he says, “markets don’t go up in a straight line for weeks upon weeks. We’re going to hit something. Don’t get too far ahead of yourself.”
RETAIL RUNNING WITH THE BULLS
No jobs and high gas prices – no problem? Target, Macy's and many other retailers blew away estimates for June sales.
The latest same store data paints a very different and much more optimistic picture of the economy.
How should you trade?
Patty Edwards thinks retailers had a number of strong tailwinds including modestly lower prices at the pump and good weather. "A lot of pent up demand came out but I’m not sure if demand holds."
Trader Steve Grasso is also skeptical. He suggests looking at the gains in ANF and URBN. "A lot of names in this space are already sharply higher for the month. I would not put new money to work at these levels," he says.
IMPROVING ECONOMIC NUMBERS BOOST FINANCIALS
They had been the black sheep in the white hot market rally – we’re talking the financials. But on Thursday investors turned positive on the sector with JPMorgan among the biggest winners.
What’s the trade?
Although Steve Grasso admits the sector could gain if Friday's jobs report is strong, with so many other headwinds he'd hesitate to put new money to work.
Trader Zach Karabell agrees. "I don’t like the group," he says. "They’re in difficult circumstances."
CALL OF THE DAY: IBM DOWNGRADE
Guy Adami might not like this next item. Wells Fargo downgraded his favorite tech stock, IBM, to “Market Perform” from “Outperform” saying near term upside is limited.
In the past Adami has said he thinks IBM is heading to $200.
But Wells analyst Jason Maynard doesn't buy it. "We just don’t think the multiple is going to expand," he says.
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