Here is some good reading. Two different sides of the same coin.
http://www.cnbc.com/id/17983850
Market pros said a stronger-than-expected employment report released Friday lowers the chance of an interest rate cut by the Federal Reserve, which could send stocks lower on Monday following a long holiday weekend.
"Good news is bad news, it's a stronger number than some were hoping for because you don't want jobs to be picking up at this stage because inflation is becoming a problem," Marc Pado, chief market strategist at Cantor Fitzgerald, told CNBC.com. "The Fed's hands are truly tied at this point; this is telling you that there is no chance of a rate cut through the June meeting."
The Labor Department said payrolls grew by 180,000, well above the consensus economists' estimate of 135,000, while the unemployment rate moved to a five-month low of 4.4%.
"Part of this rally recently has been the market wanting to see a chance for easier money policies from the Fed," said Pado. "I think the market is going to react negatively and is set up for a pullback on Monday."
http://www.chicagotribune.com/business/yourmoney/chi-0704040754apr05,0,1106063.column?track=rss
Bill Barnhart
Good Friday gives extra day to gauge job data
Published April 5, 2007
It has been almost a year since the stock market seemed to notice the monthly job-growth report, which is issued on the first or second Friday morning of the following month by the Labor Department.
Since April 2006's report, issued May 5, the market has barely registered a reaction to one of the most important periodic indicators of economic trends by the end of the Friday trading session. The ability of investors to see past data blips is a good thing, but you have to worry that we're missing the forest by ignoring the trees.
The hypothesis of short-term market resilience or complacency, take your pick, might be challenged by the coming jobs report for March.
This week, active investors face the prospect of the news being released on a day when the stock market is closed. Aside from a Good Friday morning session for bonds, most traders will have to wait until Monday to react to the news.
Wednesday's trading suggested that investors are hugging the sidelines in advance of the news.
"There's some hesitancy ahead of that report," said Pat O'Hare, manager of investor content at Briefing.com. "It doesn't make sense to get aggressive ahead of the jobs report."
In previous episodes of Good Friday jobs reports, the Monday Wall Street session occasionally has been interesting, according to Bianco Research. The last time, in April 1999 (the March 1999 report), stocks rallied more than 2 percent the following Monday. The job-growth number was much less than expected, and traders cheered.
In the 1994 and 1996 Good Friday reports, job growth for March was much bigger than expected, prompting declines in stocks and bonds. The biggest Good Friday overshoot of the actual number from the forecast in recent decades occurred in 1994. The economy created 456,000 jobs in March that year. The average monthly growth in jobs in 1994 was 312,000. Bond prices swooned that year, as the Federal Reserve squeezed credit to fight inflation.
Indeed, the most interesting revelation in reviewing this incidental sidebar to stock market history is how low our expectations have sunk about the economy's ability to produce jobs. The average job growth posted on Good Fridays, going back to April 1985, was 257,000. The average of the last 12 months was 167,000, despite the growth of the U.S. population.
Economists, on average, predict that about 130,000 jobs were created last month, up from 97,000 in February, when the manufacturing sector lost 71,000 jobs.
There is room for a surprise to be digested Monday. Statistics show that March is the month of the greatest forecast errors. Friday's data will include evidence of the two biggest market issues in the headlines: the inflation outlook and the likelihood of slower economic growth.
or google
http://www.google.com/search?hl=en&q=good+friday+job+report+following+monday
