Market Fireworks?

The jobs report comes out Thursday at 8:30am. What will it do to the stock market?

For insights we turn to Mike Darda, MKM Partners chief economist. Following is a summary of the main points made by Darda during his appearance on Fast Money.

“Non-farm payrolls should be down about 50,000 in June,” he says, “extending a string of declines, but not large ones considering the size of the labor force or what we usually see in recessions.”

Sounds dismal but it might not be negative for stocks. According to Darda the bad news is already priced in.

“The stock market has already priced for an exceptionally weak second half and no job growth, so I don’t think it makes any sense to get bearish now with a near 20% decline already behind us.”

Trading in this environment is always tricky. Fortunately Darda has some ideas. “We’re currently in a “slow growth, high inflation” environment. I think junk bonds are an attractive asset class for this environment. And I’d avoid treasuries.”

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Trader disclosure: On July 2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (ITNC), (MSFT), (NUE); Finerman Owns (GS); Finerman's Firm Owns (SUN), (TSO), (VLO), (MSFT), (PM); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns (GE) And (GE) Puts; Finerman's Firm Is Short (XME) And Owns (XME) Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (SPY), (IWM); Najarian Owns (AAPL), (CHK), (HPQ), (TSO), (XLF); Najarian Owns (MER) Puts; Najarian Owns (SLB) Calls, (WM) Calls, (YHOO) Calls, (ZRAN) Calls ;Seymour Owns (AAPL), (F), (MER), (MSFT), (TSO); Seygem Asset Management Owns (EEM), (TTM)