Could The Weak Jobs Report Help The Economy?

November nonfarm payrolls were just released and it was nothing short of awful, when expectations were significantly higher than what was actually released. November payrolls increased by 39,000 jobs, when expectations called for 150,000 jobs. The unemployment rate rose to 9.8%, versus expectations of 9.6%. Futures are actually getting slightly better than where they were after the initial shock and awe of the terrible report. So how could a terrible jobs report be good for the economy? Two things: it could cause for an immediate vote to extend unemployment benefits, as well as a shift in thinking on the extension of the Bush tax cuts. Currently the Bush tax cuts are set to expire at the end of the year for everyone making $250,000 and over. This includes small businesses, which are the proponent of hiring in this country. Unemployment benefits will most likely get extended, as no one wants to see people go homeless, and offering some aid is the humanitarian thing to do. Investors can play this by going long stocks like Dollar Tree, Inc. DLTR, Wal-Mart WMT, Target TGT and other stocks that cater to the lower end consumer. If the Bush tax cuts get extended for everyone, stocks like Ralph Lauren RL, Saks SKS, and Tiffany TIF. No one likes to see anyone lose a job, it is one of the most traumatic experiences people go through. Having stated that, maybe this awful report will allow Congress to see the light that the tax cuts and unemployment benefits need to be extended, to generate economic growth for the long term. Disclosure: long TGT