Unemployment Rate Jumps, (Possibly) Saves Bears

It’s still early but it looks like the Bears were saved by the largest jump in the unemployment rate since 1986... from 5.1% to 5.5%.

• The U.S. lost jobs in May for a fifth month.
• Payrolls fell by 49,000, a smaller decline than forecast, after a 28,000 drop in April that was more than initially reported.
• The unemployment rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986, signaling the world's largest economy is stalling.
• Payrolls shrank by 324,000 workers in the first five months of the year.
• The number of Americans receiving jobless benefits surpassed 3.1 million in May for the first time in four years, indicating employees that are being let go are having a more difficult time finding new jobs.
• Consumer confidence last month sank to the lowest level in more than 15 years as the employment outlook deteriorated, according to a report from the Conference Board, a New York research group.

U.S. Payrolls Fell 49,000 in May, Jobless Rate Jumps to 5.5%: “The U.S. lost jobs in May for a fifth month and the unemployment rate rose by the most in more than two decades, signaling the world's largest economy is stalling.

Payrolls fell by 49,000, a smaller decline than forecast, after a 28,000 drop in April that was more than initially reported, the Labor Department said today in Washington. The jobless rate increased to 5.5 percent from 5 percent, the biggest jump since February 1986.”

The S&P 500 came off quickly pre-market on the news from an overnight high of 1411. Today is an absolutely critical day for the Bears. A close anywhere above 1400 would make it damn near impossible to maintain a Bearish posture in these markets.

Anybody else notice that oil went from $122 to $132 in two days? A 8% move in two days, done with such ease, will likely to result in a move to new record highs… and equities managed to stay bid.

Crazy. Just crazy.