Wanted: A few jobs, please

Show us the jobs. That’s what Wall Street will be hoping for in the week ahead when the closely watched monthly jobs report and a fresh batch of economic data are set for release. Investors will be searching for signs that the US economic recovery remains on track — and if they get some positive evidence, that could persuade them to buy stocks. If not — or if the economic reports send mixed signals — then stocks are likely to stay in a holding pattern or decline slightly.

The government’s March payrolls report, not due until Friday, is likely to be the week’s main event, particularly as questions have resurfaced about the sustainability of the economy’s surprisingly strong rebound from recession. Thursday’s hefty rally notwithstanding, the stock market is still struggling to find its footing since it began a sharp retreat early this month. This most recent sell-off, fueled by geopolitical jitters and worries that stock prices may have gone too far too fast, has driven all three major US market gauges into negative territory for the year.

“The economy seems to have lost some of its strength,” said Rick Meckler, president of investment firm LibertyView Asset Management. “That’s a concern because it’s what drives continued earnings growth, and it’s leading some investors to conclude that stocks are at a plateau.” Speculation that employment growth is not strong enough to support consumer spending – a force that powers two-thirds of U.S. economic growth – has been one of the main issues nagging stock investors in recent months, and it will put Friday’s report in the spotlight. Economists polled predicted 103,000 new jobs were added to US payrolls in March.