Stocks surge after U.S. jobs report; dollar slips

Comments (8)
seafloor wrote:

“The euro traded at $1.3692, having risen as high as $1.3619 on Thursday, its highest level in a week.”
This is, why I don’t like liars. Lies cause a bad conscience, a bad conscience is causing mistakes and reuters certainly lies a lot.

Feb 06, 2014 10:25pm EST  --  Report as abuse
Bunker555 wrote:

They fixed it, so don’t get knots in your panties.

Feb 07, 2014 1:43am EST  --  Report as abuse

The enormous and continuously growing debt and trade deficit is rotting America and will destroy the nation once interest rates take a hike (pun intended).

Feb 07, 2014 11:45am EST  --  Report as abuse

The enormous and continuously growing debt and trade deficit is rotting America and will destroy the nation once interest rates take a hike (pun intended).

Feb 07, 2014 11:45am EST  --  Report as abuse
alwaysskeptic wrote:

The stock market made gains based on a weak jobs report. This is laughable! Next month it will be the market went up because of a strong jobs report. So which is it?

The only reason the markets move up, or down, is because the big money guys, insurance cos, investment houses, etc., see that buying or selling can create a portfolio gain or mitigate a loss. And it’s all based on their computer algorithms.

Feb 08, 2014 6:10am EST  --  Report as abuse
TheBASReport wrote:

U.S. stocks finished the week with modest gains after a two-day rally helped indexes break a streak of weekly losses. The main indexes trimmed year-to-date declines, and some analysts are predicting an end to the pullback, which began near the middle of January. There is still the emerging markets scare and the S&P 500 may contine to remain below 1,800.00 for a bit longer. The fact is that the probability of a correction has diminished dramatically. It was the second straight day of gains in what’s been a choppy week for the market. Stocks did wind up finishing the week in positive territory.

The unemployment rate slipped to 6.6 percent from 6.7 percent in December. The labor force actually rebounded a sharp 523,000 in January after dropping 347,000 the month before. Household employment spiked 638,000, following a 143,000 rise in December.

Turning back to the payroll portion of the report, goods-producing jobs rebounded 76,000 after dipping 13,000 in December. Construction jobs gained 48,000 in January after decreasing 22,000 the month before. Manufacturing advanced 21,000, following a rise of 8,000 in December.

Private service-providing jobs increased a slower 66,000 in January, following a 102,000 increase in December. Sporting goods, hobby, book & music stored pared 22,000, following an 8,000 rise in December. Retail trade jobs fell 13,000 after a 63,000 boost in December. On the positive side, professional & business services gained 36,000 after a 4,000 rise in December. Also, leisure & hospitality gained 24,000, following an increase of 20,000 the month before.

Consumer credit surged $18.8 billion in December and includes a very large $5.0 billion rise for revolving credit. The revolving credit component has been mostly flat this recovery but the December gain is the largest since May and the 3rd largest rise of the whole recovery.

The gain for revolving credit points to less reluctance among consumers to use their credit cards and hints at strength for holiday retail sales.

On Friday investors shrugged off disappointing January jobs gains and instead focused on the more positive details in the government’s report. The unemployment rate ticked down while the labor force participation rate edged up.

The S&P 500 closed up 23.59 points, or 1.3%, at 1,797.02 and recorded a 0.8% weekly gain after three straight weeks of losses.

The U.S. economy added 113,000 jobs in January and the unemployment rate fell to another post-recession low, of 6.6%. The top line in the jobs report was weak but the details had many positive aspects. The household survey side of the report, which probably leads the businesses survey, was far stronger at 638,000 — there is a big discrepancy, so chances are the labor market is stronger than what the headline number suggests. The fact that the unemployment rate fell and labor force participation rose is a good sign. Details in the report, including an increase in aggregate hours worked and average weekly earnings, signaled a “reduction in labor-market slack.

The poor job growth will put pressure on the Fed to pause on pulling back, or tapering, its monthly bond purchases at its next meeting in March And that is why markets were higher Friday. The thought process now is that bad can be good in the near-term. Investors will be looking for more clues about the Fed’s next moves when new Fed chair Janet Yellen appears twice before Congress to discuss the state of the economy. Turmoil in emerging markets and concerns about the strength of the U.S. economy could mean more volatility in the months ahead. Big investors are rotating out of stocks and into bonds. Institutional investors pulled a record amount of money out of U.S. stock funds and shifted it into bonds funds. We’re not running into a higher probability of a recession. As a result the markets can stay in relatively broad trading range with the S&P 500 trading between 1,75o to 1,850.00. S&P 500 companies are on track to “print an earnings per share number 9 to 10 percent higher; revenue is only going to be up about 2 to 3 percent, so the top line is a longer-term worry, but on the bottom line, companies have delivered for another quarter. The S&P 500 gained 23.59 points, or 1.3 percent, to 1,797.02, with health care and industrials leading sector gains that included all 10 of the index’s major industry groups.

At this point the most likely scenario on Monday will be to see the stock market in and out of the red. It’s close will be a matter of how much money will stay in stocks and how much money strays to bonds. The market can go either way on Monday but it has a 55% probablility of closing in the red on Monday.

Feb 08, 2014 6:17am EST  --  Report as abuse
Bighammerman wrote:

That is one of the tools Obama uses to artificially inflate the market, making things look good while on the track to disaster.

Feb 09, 2014 4:56pm EST  --  Report as abuse
Bighammerman wrote:

That is one of the tools Obama uses to artificially inflate the market, making things look good while on the track to disaster.

Feb 09, 2014 4:56pm EST  --  Report as abuse
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