In light of today's less than expected job numbers report, we discuss how "smart money" might think about the news in terms of potential effect on the stock market, the dollar and Gold.

A lower than expected job reports indicates that the market may have priced higher than expected earnings. It is a bearish news for the stock market. In addition the market would price gold higher vs. the dollar to reflect the likelihood of monetary policies that could weaken the dollar (and therefore a rise in the price of gold).
The market behavior so far is not inconsistent with the above analysis.

Some traders and investors may be neutral the stock market, and therefore aim to short weaker stock sectors (or less strong stock sectors depending how one looks at it), and hedge by going long less weak stocks (or stronger stocks).

A rise in the price of Gold supports the fundamentals of gold stocks. A weaker than expected jobs reports might also signal that there would be less appetite for capital goods and in some technology areas such as the semiconductors.


Below is a list of stocks that related to the sectors and industries discussed above. The discussion given above is consistent with the losses and gains of the stocks in stock lists shown below.

Some capital goods stocks (with their percentage change as the time of writing this post):
ARMH ARM Holdings plc (ADR) -3.14%
AMD Advanced Micro Devices... -2.59%
NVDA NVIDIA Corporation -2.38%
TXN Texas Instruments Inc. -1.97%
BRCM Broadcom Corporation -1.37%
ORCL Oracle Corporation -1.26%
HPQ Hewlett-Packard Company -1.21%

Some Semiconductor stocks:
ARMH ARM Holdings plc (ADR) -3.12%
AMD Advanced Micro Devices... -2.66%
NVDA NVIDIA Corporation -2.38%
TXN Texas Instruments Inc. -1.97%
BRCM Broadcom Corporation -1.43%
ORCL Oracle Corporation -1.20%
HPQ Hewlett-Packard Company -1.12%

Some Gold related stocks:

IAG IAMGOLD Corporation (USA) 0.31%
KGN Keegan Resources Inc. 0.00%
GOLD Randgold Resources Ltd... -0.06%
RRS Randgold Resources Lim... -0.20%
NSU Nevsun Resources (USA) -0.31%
GSS Golden Star Resources ... -0.60%
HMY Harmony Gold Mining Co... -1.05%

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