Wall Street was anticipating the unemployment rate to come in at 4.6%, but instead was greeted with a jump to 4.9%. Non-farm payrolls fell 68,000 more than the expected 42,000.
The shocking increase has sent stock futures tumbling, and everyone squawking for the Fed to step in a do something. Dow futures are now down 75 points, Nasdaq futures are off 16, and S&P 500 futures are 10 points lower. HL Camp and Company has fair value for the S&P 500 at $1.22. Buy programs are set at $2.51, and sell programs at ($0.41).
The bond market has gone into a buying frenzy, pushing yields down across the board. The yield on the 5-year note has set at a new yearly low, and the 3.51 percent yield on the 2-year is the lowest since it was introduced in 1972.
Intel's announcement that they are on track for the third quarter will be overshadowed by the recent economic data, but might help to limit the damage on the Nasdaq.
Technology might also be help by Merrill Lynch comments that the networking sector is glimmers of growth. Europe is still weak, but Asia is growing. FFIV, EXTR, and ETS were highlighted in the report.