The Silver Lining Of The Jobs Report

Morning News of Note:

• AMD Advanced Micro: Color on preannouncement -Update-
  Several firms are commenting on AMD following last night's preannouncement: Friedman Billings views the miss as consistent with earlier checks indicating PC market weakness that appeared to worsen as the quarter progressed. As such, they don't think this will come as a surprise to investors, and note the stock has already sold off, likely anticipating a miss.
• AAPL Apple Computer seen countering Microsoft with wireless iPod - AppleInsider (55.77 )
  AppleInsider reports in a research note released to clients this week, PiperJaffray analyst Gene Munster said he also sees a wireless iPod making its debut from the co. "Apple has stated that ease of use is a key element of the iPod, so wireless functionality is an obvious next step for the product line," Munster wrote. "Apple has also stated that the pace of iPod innovation will not change." Historically, the co has released two new iPods each year. "But Apple has yet to release a new iPod this year," Munster added.
• GOOG Google: Hearing GOOG added to Goldman's Conviction Buy list (423.19 ) -Update-
• Pre-Market Gappers
  Gapping Up: TIBX +5%, DIET +4.9%, FNSR +4.6%, MT +4%, AAUK +3.6%, DTAS +3.4%, TZOO +2.6%, RTP +1.5%, BP +1.4%, HANS +1%, GOOG +1%, Under $3: RGX +31%... Gapping Down: WEBM -27%, BOBJ -26%, NMSS -26%, ESCL -5.8%, AMD -4.7%, PGS -4%, SBUX -3.8%, STM -2.1%, ASMI -1.4%, DELL -1.4%, INTC -1%.
• Nonfarm Payrolls 121K vs 160K consensus

Market Comments: The market opened on a down note this morning. The media will try to say that it is in reaction to the weak jobs report, but I think it has more to do with the earnings warnings from AMD and MMM.

The weak jobs report has a silver lining in that it eases the pressure on the Fed to raise rates. It also points to slower growth, which is why yields in the bond market are falling, with the 10-year down to 5.14%. It looks like this yield has made a double-top and the short-term trend is lower.

Oil is making another new high today ($75.50), which is lending a bid to the energy complex. Biotechs are also strong again this morning, relatively speaking.

I expect to see some stabilization by the close.

long AAPL, GOOG