Today's rally: it's not about the January nonfarm payroll report.
The January nonfarm payroll report was slightly below expectations and not very inspiring. However, the upward revisions in November and December were significant. The bottom line is that the job market, after the revisions, was stronger last year than previously thought.
But there are other factors in today's rally:
- First day of the month inflows. Volume heavier than normal. This was the biggest contributing factor cited by traders.
- ISM, consumer confidence, and auto ales were stronger than expected.
- China PMI came in lower than expectations, but people are still happy that it's still in growth territory.
- For those in the "bad news is good news" camp, the unemployment rate ticked higher, implying the Fed will keep up its stimulus program.