Breaking Down the Jobs Number

April Non-Farm Payrolls increased by 165,000

Revisions to the February Number showed jobs increasing by 332,000 versus 268,000 – this is now the best month for job creation since November 2005 (not including months where census workers were added)

Revisions to the March Number showed jobs increasing by 138,000 versus 88,000
April Unemployment Rate fell to 7.5%, the lowest reading since it was 7.3% in December 2008 and below the 7.6% in March

Average Workweek down 0.2 hours to 34.4

Average Hourly Earnings +0.2% versus flat in March – but with an increase of only 1.9% in the last year it barely keeps up with inflation

Labor Force Participation Rate remained at 63.3% and still down from a reading of 63.6% last year – remains at a 34-year low.

The Unemployment Rate for people who want a full-time job and cannot find them (The U-6 Number) increased to 13.9% from 13.8% in March – This is the true barometer.

4.4 million: the number of people out of work for at least 6 months  – historically high for what many are calling a recovery.

150,000: the number of jobs that need to be created each month to keep up with population growth – April’s 165,000 will not get people back to work.

ETFs Up on a Big Down Day

Today the major US indices lost 0.9% and Gold fell by 1.2% as fears over Friday's jobs report and a slew of disappointing economic numbers caused the bulls to take a breather after pushing the S&P 500 to yet another all-time high yesterday.

There were a few bright spots in the world of ETFs today.

• PowerShares Build America Bonds (BAB) - Up 0.6% to a new historic high.
• First Trust High Yield Long/Short ETF (HYLS) - Up 0.2% today to a new high; the ETF has a yield of 6.5%.
• PowerShares Emerging Markets Sovereign Debt ETF (PCY) - Up 0.3% today to a new multi-month high; current yield of 4.8%.

Matt Talks Visa vs. Mastercard on BNN

Watch Matt discuss the better investment, Visa ($V) or MasterCard ($MA) today on Canada's BNN.

Morning Outlook: Jobs Report, Poor Econ Numbers, Stocks at Highs

Jobs Number Preview

The ADP April jobs number came in below expectations and showed the lowest monthly job growth in 7 months. The payroll processor said the private sector added only 119k jobs in April. And the March number was revised down to 131k from the original 158k reported last month.

The group of (oft-wrong) economics that come up with expectations believe the government number released on Friday will show an increase of 160k jobs. Last month the government number was disappointing and came in well below estimates and the ADP number.

All signs are pointing to yet another disappointing number on Friday morning when the government number is released. I am cautious in the very short-term heading into the report on Friday morning.

More Disappointing Economic News

The US April PMI Number fell to 52.1 from 54.6 in March and in-line with analysts expectations. The trend over the last two months as been the same for nearly all economic numbers - they are trending lower.

Breakout Stocks

A list of a few stocks breaking out that are on our PFG WatchList:

• CubeSmart (CUBE) 
• Oceaneering International (OII)
• Enbridge (ENB)
• Alliance Data (ADS)
• Ecolab (ECL)

Investing in 2013 Top Global Stock Markets

I would garner a wager that most investors have been missing out on the best performing stock markets in the world in 2013. Not only are they smaller countries that are often overlooked, a few of them are in regions of the world that many consider hotbeds for geopolitical turmoil.

The fourth best performer is Kuwait, with a gain of 23% year-to-date. The country is expected to finish 2013 with growth of 4.5% before accelerating to 5% growth in 2014. The stock index has been boosted by shares of small cap companies as well as plans to continue upgrading their infrastructure system. The Kuwait stock market recently traded at the best level in nearly 3 years.

The second top performer in 2013 is the United Arab Emirates (UAE) with a gain of 28%. The country is expected to grow by 3.3% in 2013 and tick up to 3.4% one year later. A boost to the country’s economy and stock market has been a rebound in the real estate market after a drop during the 2008 global recession.

So how does a US investor play the surge in the Middle East stock market prices?

One option is the WisdomTree Middle East Dividend Fund (GULF). The ETF invests in the UAE (35%), Qatar (28%), Kuwait (18%), Morocco (9%), Egypt (6%), Oman (3%), and Jordan (1%). The sectors most heavily weighted are the financials (48%), telecom services (31%), and industrials (17%).

Along with the Kuwait and UAE as top countries, Qatar also makes up a sizable portion of the allocation. Qatar is expected to grow by 5.0% in both 2013 and 2014 as it plans to spend $140 billion to upgrade its infrastructure before they host the 2022 World Cup soccer tournament.

The ETF is currently up 18% in 2013 and is trading at the best level since 2008. On top of strong capital gains are the quarterly dividend payouts to investors. The payouts can be erratic at best, however the last quarterly dividend payout was $0.21/share. Annualized out this is a yield of 4.8% if the dividend was to remain constant for the next 3 quarters and based on today’s price of $17.60.

The chart below shows the 1-year performance of GULF (+16%). I would look for a pullback in the $17 area for an opportunity to buy at a more attractive entry price.

Morning Market Outlook: New Highs, Asia, Technology

Market Easing off Highs:

The S&P 500 is down slightly premarket after closing at yet another all-time high yesterday. Investors are digesting a number of earnings reports from overseas and have decided to slow down the buying this morning. Remember that the market will not hit all-time highs everyday and that you must be prepared for pullbacks as buying opportunities. RELATED ETFs: SPDR S&P 500 ETF (SPY)

Southeast Asia Concerns:

The IMF is sounding the horn again about concerns over the potential bubble that could be forming in Southeast Asia. I find the entire situation comical because all the IMF and other agencies do these days is attempt to put a negative spin on everything. The region has been the strongest in the world recently with markets hitting highs and the economies growing at a robust pace. If the numbers were bad and the market was falling the IMF would also be concerned. So ignore the headlines and concentrate on the real story – Southeast Asia is strong and you should continue to ride the uptrend. RELATED ETFs: Global X FTSE ASEAN ETF (ASEA), iShares Thailand ETF (THD), iShares Philippines ETF (EPHE), iShares Singapore ETF (EWS), Market Vectors Indonesia ETF (IDX), iShares Malaysia ETF (EWM)

Technology Stocks Lead Rally:

The large-cap Technology stocks led the market rally yesterday with the SPDR Technology ETF (XLK) up 1.4% on the session and it is now up 4% from a mid-April low. Apple (AAPL) tagged on 3.1% and IBM (IBM) rallied 2.5% to lead the sector. The move in AAPL was significant because it closed above the $420 resistance level and if it can continue the rally and close above $433.50, the 50-day moving average, it will trigger more buying interest. Apple is currently trading at $432.50 in premarket action. RELATED ETFs: Apple (AAPL), IBM (IBM), SPDR Technology ETF (XLK)

Pre-Market Outlook Video

Highlights of today's 5-minute market primer:

• Analyzing the SPY
• UK GDP growth and EWU
• Spanish Unemployment and EWP
• Upcoming earnings: AMZN and SBUX
• 3 Stocks added to WatchList: BEN, NMR, IP