The rally on Wall Street hit another roadblock on Thursday despite better-than-expected economic data. The data included ISM services and factory orders which both came in better than expected. The news sent the S&P 500 up in early trading but resistance capped the gains at the key 4,150 level. If the market can not get above this level soon another round of selling could follow and there is a catalyst due out on Friday.

The NFP report is expected to show a slowdown in hiring that is also foreshadowed by the jobless claims data. The number of initial and total claims for unemployment continues to rise and suggests a topping in the labor markets. Topping in the labor market is good news for inflation but bad news for the economy because it will undercut consumer spending growth and weigh on the outlook for economic activity and corporate earnings.