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The ADP Report Better Than Expected

The April ADP report was released today and it was better than expected. That doesn’t mean that it was all roses though. Many people are still losing their jobs, but not to the extent to where we could be. The report states that there was a decline of 491,000 compared to the 700,000 that the analysts were expecting. In the release, the March numbers were adjusted to 700,000 from the original number of 663,000.
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This brings the unemployment rate to 8.9% from 8.5% last month. This makes it the highest unemployment rate since 1983.
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All the signs of the stock market and the economy show that the bottom is coming (if not here already). The unemployment rate is the last thing to change course. We can expect to see the unemployment rate get as high as 10%, but as that happens the economy will improve.
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In the meantime the stock market has made some great strides this week again. Seeing the DOW at 8500 is nice, but can it stay that way or will it drop down to the 7000 level once more before we really get get back on track. The S&P 500 closed over 900 points and to think of it dropping down below eight hundred is not something that most analysts are predicting.
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Either way I’m keeping a watchful eye on the markets as I continue to be a trader and not an investor. Yesterday was a great example. when the market opened, the trend was pointing downward. I sold out of my positions in the morning and jumped back into the same ones right before the close of the day. In some cases I bought the same shares back at 15% less than the price I sold them at earlier in the day.
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Two of the stocks were
Sirius (NASDAQ: SIRI) sold at 0.52 per share, bought back at 0.42
Caterpillar (NYSE:CAT) sold at $40.75 per share, bought back at $38
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*DISCLAIMER* Billy has holdings in Sirius and Caterpillar at the time of this being posted.

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