The Dow experienced its biggest one-day jump since late June on Friday, erasing four straight days of losses.
Investors have better-than-expected new job numbers to thank for at least part of the climb. The economy added 163,000 new positions in July. That’s not just more than predicted, but also the first time in four months payroll gains topped 100,000.
With the market continuing its upward trajectory today, however, some analysts are cautioning investors about being too bullish…
John Lonski of Moody’s Capital Markets Group, says, “The most important fundamentals that give direction to private sector hiring are business sales, which have been very weak… and profitability, which has begun to decline on a year-over-year basis. And thus, as an investor, you would be making a big mistake if you extrapolated too much good news about the future.”
Talk about a downer. For a much brighter and contrarian take on the market, take a look at Louis Basenese’s article from last Friday.