Dow Jones Today is Unimpressed with Weak Jobs Report

The Dow Jones today is little changed after a weaker than expected jobs report.

Feb 5, 2014 at 1:30PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrial Average (DJINDICES:^DJI) is relatively unchanged today, up seven points, to 15,451, at 1:30 p.m. EST, after a weaker than expected private sector jobs report. The S&P 500 (SNPINDEX:^GSPC) was down two points to 1,753.

There are two U.S. economic releases affecting the blue-chip index today.





ADP private sector jobs report



227,000 (r)

ISM nonmanufacturing PMI




The Automatic Data Processing private sector jobs report showed nonfarm employers added 175,000 jobs in January, lower than analyst expectations of 189,000 jobs and below than December's downward revised 227,000 jobs. ADP had previously estimated the private sector added 238,000 jobs in December.

ADP Change in Nonfarm Payrolls Chart

ADP Change in Nonfarm Payrolls data by YCharts.

The private sector jobs report gives economists an advance idea of how the government's main jobs report will turn out. Analysts expect the Labor Department on Friday to report that the public and private sectors added 190,000 jobs in January, after only adding 74,000 jobs in December. December's weak report was attributed to bad weather affecting jobs and reporting.

US Change in Nonfarm Payrolls Chart

US Change in Nonfarm Payrolls data by YCharts.

We will have to wait and see what happens on Friday. Unless the January jobs report is also terrible, which seems unlikely, the basic story of the past few years remains unchanged. The economy continues to add roughly 180,000-200,000 jobs a month, which combined with baby boomers retiring is lowering the unemployment rate faster than many expected. More people with jobs and a lower unemployment rate is good for the economy. The flip side of this is that it may be bad for the market.

The Federal Reserve has been surprised by how fast unemployment has fallen. As such the Fed taper of its economic stimulus has started with unemployment near its target of below 6.5%. With the central bank purchasing fewer long-term assets each month, I expect rates to stay above last year's level and profit growth to be challenged.

Foolish takeaway
So what can an investor do in times like this? It's hard to stay sober while everyone around you is drunk on Fed-stimulus punch, telling you to join in on the fun. My advice: Keep learning, focus on your goals, have an investing plan for the long term, stick to it, and ignore the crowds.

As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information