So, What's Next? What Moves Stocks Now?

Two things:

1) More detail on the stimulus package—it's unlikely that today's jobs report will result in a big increase in the stimulus package, but there is still a lot of detail that will materialize in the next two weeks. Expect some movement in infrastructure and healthcare stocks.

2) Fourth quarter earnings and guidance. Unfortunately, we are continuing to see earnings come down for the fourth quarter. For example, estimates continue to drop for retailers, energy, and material stocks.

And we are also seeing numbers come down for the first quarter.

Alcoa kicks off earnings season with its report on Monday.

You can argue that sell-side analyst estimates are notoriously bad—and late—and you would be right. But the Street still watches the trend, and the trend is heavy cutting of estimates. Expect that when the analysts finally start erring on the other side (i.e. they are cutting TOO MUCH) that will be widely noted as a bottom.

Elsewhere: It never dies. U.S. Rep. Gary Ackerman (D-NY), a Senior Member of the House Financial Services Committee, today reintroduced legislation that would reinstate the uptick rule, which required a stock to increase in price before a short sale could be executed.

    • Obama Uses Jobs Report to Push for Stimulus Plan



Questions? Comments?