Friday, February 6, 2015

Economic Journal - Friday, 2/6/2015

(as of 7:15 AM PST)
 
The jobs report this morning was nothing short of incredible.  New jobs creation exploded to the upside and employment reports for the two prior months were revised upward by a large magnitude. The employment rate itself ticked up to 5.7%, because of increased participation in the search for employment but this was a report showing that the US economic recovery is picking up steam rapidly.  Markets are near unchanged despite the ultra positive numbers because a Federal Reserve interest rate increase is now much more likely to occur sooner that later.  It's the old good news is bad news for markets scenario.  Gold is down big today with the US dollar rallying against most currencies while oil continues to recoup losses from the last month.  Profit reports are all over the place with some big gains and losses to individual stocks while the overall effect on market indexes is negligible.  International markets are generally weak.  The Greek financial mess continues to weigh on the Euro and European stocks are down.  It is hard not to see a continuation of our amazing February rally with strong economic data winning the day.  

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