Market jitters were everywhere in the lead up the the release of the unemployment figures. With a print of 115k, it seems the jitters were justified as they missed expectations of 160k. The unemployment rate did drop to 8.1% as 350k people exited the labor pool. Currently the three major indexes are whipsawing on the news as investors digest the numbers.
The report shows that there is still a reluctance on hiring new workers. The drop in the unemployment rate is more of a smokescreen because of the way the BLS measures employment. 350k people giving up their search in the job market is not a good sign moving forward.
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Outside of the NFP numbers this big news that will come out of this weekend is the double elections in France and Greece. Both could have huge implications for EU and their current slate of rescue packages. The populace is getting restless with the continual austerity measures that have stunted growth across the region. French President Sarkozy is trailing the socialist candidate, Francois Hollande going into the weekend.
In commodities, oil and gold are diverging on how to treat the unemployment numbers. Oil prices continue to stay negative with Nymex crude futures down $1.47 to $101.07 per barrel.
Gold prices are turning higher on hopes that a softening labor market will force the Fed into reaction mode. Gold futures are up over $7 to $1,642 per ounce.
Stocks to Watch
DigitalGlobe, Inc. (NYSE:DGI) is up 28.33% in pre market trading at $17.35. DGI has traded 21 thousand shares this morning and trades 533 thousand shares a day on average. DGI shares are moving higher on news that GeoEye offers to buy DigitalGlobe for $792 million. The company has a market cap of 626.25 million.
LinkedIn Corporation (NYSE:LNKD) is up 9.72% in pre market trading at $120.48. LNKD has traded 47 thousand shares so far today and trades 3.3 million shares a day on average. LNKD shares are up today thanks to strong first quarter results. Sales doubled in the first quarter to $188.5 million, beating estimates of $178.4 million. Net income increased to $5 million or $0.04 a share. The company has a market cap of 11.21 billion.
ZAGG Inc. (NASDAQ:ZAGG) is up 5.62% this morning at $12.60. ZAGG has traded 3.1 million shares so far today, more than double its daily average. ZAGG reported record first quarter results late yesterday. ZAGG reported first quarter consolidated revenue of $55.5 million. GAAP diluted earnings of $0.16 per share. The company has a market cap of 358.35 million.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is up 3.25% in pre market trading at $2.86. ARNA stock has traded 36 thousand shares so far today and trades 10.3 million shares a day on average. ARNA shares have jumped 27.33% in the past five days as traders position themselves ahead of the company’s FDA decision date later this month. The company has a market cap of 499.77 million.
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Vringo, Inc. (AMEX:VRNG) is up 6.51% in pre market trading at $3.60. VRNG has traded 12.2 thousand shares this morning and trades 2.4 million shares a day on average. Over the past week, VRNG shares have traded as high as $3.60 and as low as $3.05. The company has a market cap of 46.85 million.
Micron Technology Inc. (NASDAQ:MU) is up 2.47% this morning at $6.63. MU has traded 252 thousand shares so far today and trades 33.1 million shares a day on average. MU shares are looking to bounce back today after the stock fell more than $0.40 a share yesterday. The company has a market cap of 6.40 billion.
Body Central Corp. (NASDAQ:BODY) is down 34.68% this morning at $18.89. BODY has traded 17 thousand shares so far today and trades 166 thousand shares on average. BODY shares are tumbling as outlook disappoints. BODY was also downgraded to neutral from overweight at Piper Jaffray. The company has a market cap of 466.31 million.
About Danny Fisher
