There is always a message to the market, although it's not always a revolutionary message or life alternating in any other way. In fact, it's safe to say that the message of the market for most of 2010 was confusion. In that respect the market is the perfect proxy for the masses. There is much confusion along with frustration, fear, anger, and angst. Missing has been hope, and yet that might have been the very message the market sent yesterday with its last minute spike into the close that turned 2010 from a loser to a winner. I don't want to wax too philosophically or be too dramatic but the market is reminding us that things can get better even when it looks darkest. Although economic data continues to be mixed, it's much better than last week when the altimeters went haywire and we heard May Day May Day. It felt like we were going to crash before the weekend.

Now we head into a new weekend understanding that this is still an uphill climb The government isn't helping as Washington is a mess, and yet I think that the market understands the public has awakened from its slumber or malaise. There isn't much time left to force bills and create laws without much public support. In the meantime, it's all going to be touch and go. I happen to believe in the business cycle and I believe in the underlying strength of the U.S. economy. John McCain was raked over the coals for saying that America is fundamentally strong and when you talk about the people of the country, McCain was spot on. People are sucking it up and making it happen even as their home values continue to sink and more people they know lose jobs. Yesterday's productivity report was a shocker.

It proves people will worker longer and harder even as they make less. It's not something they do for a long time but when there are six people vying for each published job opening there are few options. Against that backdrop people lose confidence but their own willingness to get the job done and fight for survival is what I think saves the day. But it's going to be a tug of war and that's even if anti-business rhetoric and policy dreams are abandoned. The market clawed its way into the plus column on the eve of the much anticipated jobs report. That's impressive even if it happened on vapors. Of course nobody is betting the ranch but let's not forget the improbable rally achieved last year happened on paper-thin volume, too. So maybe today we are at the crossroads. Maybe the market is ready to give the American people a vote of confidence?

February Non-Farm Payrolls

The market is reacting positively to this morning's jobs report, in spite of there being a few negatives worth calling out. The employment rate fell slightly to 9.7% from 9.8%, and total non-farm payrolls declined 36,000 (consensus: -68,000). Somewhat positive aspects to the report were manufacturing (unchanged), retail (unchanged), and temporary (+48,000). However, there was a sizable increase in those marginally attached (+476,000), people who have been out of work and are having difficulty finding new employment. Theoretically if the jobs market was humming along marginally attached numbers would be declining.