A bullish first quarter ended with a modestly weak session (one of only a few this month) as a report by ADP regarding private employment data came in significantly worse than economists had been anticipating (details below). As well, the market saw some late-day profit taking as not everyone believes this strong rally will simply continue unabated.

From a fundamental perspective, the slashing of 23,000 jobs from the private sector (rather than an expected addition of 40,000 jobs) reported by ADP Employer Services was of concern - it shows that despite the hoopla about the upcoming jobs report (to be released on Good Friday when the stock market is closed), the US labor market is by no means on a solid footing. Simply losing fewer jobs is no longer enough; investors want to see actual jobs growth (they may get that on Friday, but the caveat is that that number may be heavily skewed by heavy government hiring for the upcoming 2010 census). Economists suggest that some 200,000 jobs may have been created in March.

Despite today's modest slide, many analysts expect second quarter action to start on a solid footing. As well, there is a certain optimism about the new earnings season that is about to start. However, Wall Street darling Research in Motion (the maker of the BlackBerry) reported today that quarterly results came in below expectations. Recently, there has been pressure on the stock as well, as RIM's largest customer - Verizon Wireless - may start selling a competing product, a new version of the iPhone.

Energy issues benefitted today from President Barack Obama's announcement that US offshore oil and gas drilling would be expanded, notably in a part of the Gulf of Mexico.

Key economic data for the week starting March 29, 2009. Numbers shown are consensus estimates (market anticipates this value) and prior value.

Thursday:
	NEW VEHICLE SALES (Mar) (M): 12.0M / 10.4M 8:30 AM CONTINUING CLAIMS Mar-20: n.a. / 4648K INITIAL CLAIMS Mar-27: 445K / 442K 10:00 AM ISM - MANUFACTURING (Mar): 57.0 / 56.5 CONSTRUCTION SPENDING M/M (Feb): -1.0% / -0.6%

Friday:
	Markets Closed for Good Friday 8:30 AM NON-FARM PAYROLLS (Mar): 190K / -36K UNEMPLOYMENT RATE (Mar): 9.7% / 9.7% AVERAGE HOURLY EARNINGS M/M (Mar): 0.2% / 0.2% MANUFACTURING PAYROLLS (Mar): 5K / 1K

© HGH Associated Press

News Archive (from 1/1/2010 until 3/31/2010)