Solid Jobs Report

Morning News of Note:

• Super Bowl Ads: FOURTH AND LONG The clock is ticking to line up advertisers for Super Bowl XL. ABC has refused to say if the Super Bowl is nearing a sellout, fueling talk that the network is having a harder time offloading the spots than in past years. (Full Story) NY Post
• Mobile Handsets: Digitimes reports Taiwan-based handset manufacturers and own-brand companies expect a surge in handset demand from emerging markets will be a major growth driver in Taiwan's handset industry this year, according to sources in the industry. A recent report from iSuppli stated that global mobile-phone shipments will reach 850 million units in 2006, up 4.6% from last year. The handset market in 2006 will continue to be increasingly reliant on upgrade phone shipments and new subscriber growth from emerging markets. In addition to China, India, Russia and Brazil, Taiwan handset makers are eyeing potential growth in countries in Southeast Asia, the Middle East and Latin America this year, sources at the companies noted
• Fund Flows: equity fund inflows $7.6bln, ex ETFs inflows $2.9bln; ETF flows: MDY $1.793bln, IWM $1.275bln, QQQQ $746bln, IJR $662m, EEM $571m, SPY ($1.4bln), DVY ($632m), DIA ($487m); taxable bond funds rptd inflows $982m, incl inflows to investemnt grade corp funds $534m; money mkt funds rptd outflows ($6.61bln) -- AMG Data
• FDP: Del Monte to Shut Pineapple Plantation After 90 years in the islands, Fresh Del Monte Produce Inc. said it would cease pineapple operations in Hawaii in a little more than two years. The company said it was no longer economically feasible to grow pineapple in Hawaii because it can be grown for less in other parts of the world. (Full Story) LA Times
• Mad Money Summary: Jim Cramer began his show talking about LifeCell (LIFC), a company which makes artificial skin to reduce scarring after hernia operations. He likes LifeCell's earnings and says the company has little competition. Cramer went on to say that Hexcel (HXL) is the next Allegheny Tech (ATI), which is up to $51.70 from $36 since Cramer recommended it a month ago. He says Hexcel is an unexploited play on Boeing's (BA) success. Then Marketwatch columnist Herb Greenberg came on to argue the merits of Intuitive Surgical (ISRG), which Greenberg said was a danger as a momentum stock. Cramer then pointed out Jos A. Bank Clothiers' (JOSB) blowout quarter, but Greenberg was cautious on the stock. Greenberg was even more cautious on CVS (CVS) because of its many acquisitions, but Cramer defended the company, saying it is better than it used to be. Focusing on alternative energy, Cramer said to look at Ormat Technology (ORA), which he thinks has the best proprietary technology for geothermal energy production. In the Lightning Round, Cramer was bullish on HW, ENER, AT, COP, TRAD, AMTD, SMDI, GG, BMD, BHP, NTO, ZGEN, RDY, REDF, BWNG, VLO, AMT, KYPH, ADM and GOOG, and was bearish on XOM, AMSC, CTDC, ILSE and SIFY.

Market Comments: The jobs report came in at +192k vs. +250k consensus. That's still a pretty strong number, it's just that expectations were a little too high. Moreover, unit labor costs were up, as were wages. That is causing bonds to sell off and pushing yields higher to 4.58%. This is further weighing on the market.

Two highfliers, CERN and ISRG, both reported solid earnings last night but are seeing the stocks selloff. RACK also reported great numbers and is up big this morning. Housing stocks are down the most, as a group.

The market is acting like this correction has further to go. I think we need to see a little more bearish sentiment build up in the market also. The put/call ratio opened above 1.0, so that's a start.