(as of 6:45 AM PST)
The mild opening of US stock markets this morning belies the vibrancy and volatility of underlying investment categories. The jobs report was a blowout number. 271,000 jobs were created, far above analyst estimates of 160,000. The unemployment rate dropped to 5%, a number not seen in many years, and, to top it off, wages are finally growing, up by .4% as part of that same report. The US dollar is soaring, interest rates are smartly higher and commodities are getting punished by the strengthening dollar. Stock investors are unsettled by the news however, since the strength of the economy almost assures that the Federal Reserve will start its long awaited program of cranking up interest rates in December. It's the old 'good news is bad news' theme since more economic stimulus is definitely off the table and deleveraging of stock market investments might create a wave of selling as a result. For today, however, it is more likely that buyers will return to the market based on this overwhelmingly positive news as interest rate fears subside as the day wears on.
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