The employment report released in September 2008 proved to be a watershed moment for stocks. The 84,000 net loss in jobs put the market on its heels right when traders were returning from their summer vacations, and ended the bull market run that started in October 2002.
This Friday's report could be equally important. If we see further evidence of economic growth, that may keep the door open for a Fed rate increase as early as this month. Market reaction to a bullish employment number should also give investors an indication of whether stocks can rally in a (very slightly) higher rate environment.