(As of 7:20 am PST)
Stocks are trending higher
this morning as the US private sector added 321,000 jobs in November. Today’s
non-farm payrolls report has caught everybody by surprise. So much so, that
market gains are surprisingly muted, perhaps indicating a ‘good news, bad news
scenario’ is surfacing again. The 321,000 new jobs added in November marked the
biggest gain in three years with nearly every sector adding jobs. In another
good sign, hiring was also revised upward 44,000 for the prior two months. The
unemployment rate remained the same at 5.8%, once again below the Fed’s target
rate of 6%. As things continue to improve here at home, the question on many investors
minds will be when is the Fed going to raise interest rates. The Fed has
indicated 2015 as their target, but if we continue to see strong reports like
the one today, chances are that first rate hike will come earlier in the year.
Internationally, Asian stocks finished the week mostly higher, while European
markets snapped back after yesterday’s losses. Commodities are lower with oil on
pace to finish the week down 10%.
Interest rates and the US dollar are higher. Expect momentum to pick up
as the day wears on with the Dow now closing in on 18,000.
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