(As of 7:20 am pacific)
Stocks are trying to breakout a rally on strong jobs
data, but consumer sentiment and worries over the fiscal cliff are holding
markets back. The US Labor Department reported that the
private sector added 146,000 jobs in November, much higher than analysts
expected. The unemployment rate fell in November to
7.7% from 7.8%, mostly due to 350,000 people dropping out of the labor force. October and September jobs numbers were
downwardly revised. A preliminary
reading of US consumer sentiment fell in December, likely due to fears over the
fiscal cliff and higher taxes at the beginning of the year. In Europe, markets were lower to start as the
German central bank cut its 2013 GDP forecast from 1.6% growth to 0.4%. Stocks bounced back later in the day after
the US jobs data came in. The big story
out of Asia was of the 7.3 magnitude earthquake that hit just off the Northeast
coast of Japan. It struck just after the
markets closed, having little impact on stocks and at this point there are no
reports of casualty or damage.
Commodities are higher today with oil and gold edging up, while the
dollar is also up. Interest rates are
higher and 30 yr. mortgage rates are lower as a result of Fed buying. Volatility is down today. It looks like a push and pull day as investors
weigh the jobs report against the fiscal cliff drama.
