Looking ahead to Friday’s data, economists expect the U.S. economy added 65,000 jobs in September, according to consensus estimates from Bloomberg. Nonfarm payrolls were unchanged in August.
In the bigger picture, bulls are hoping stock ETFs can finish 2011 strong after a string of down quarters.
“History shows (but does not guarantee) that an oversized price decline in one quarter is typically followed by a sharp advance in the next. Also, expectations surrounding Friday’s payroll report and third-quarter earnings are now quite low, in our opinion, possibly offering this rally the catalyst for near-term propulsion,” S&P said. “Yet we believe this rally will be short-lived as prices encounter chart resistance, just as the leveraging of the European Financial Stability Facility is expected to face German resistance.”
SPDR S&P 500
Full disclosure: Tom Lydon’s clients own SPY.