Payroll data was released at 8:30 AM with employers boosting payrolls by 132,000 in November. Unemployment rate edged up slightly to 4.5% from 4.4% in October. The payroll boost was an improvement from the October number of 79,000. Both S&P 500 and NASDAQ futures reacted positively to the data and are now posting gains.
This was also positive news for the Federal Reserve as the report is indicating the economy was behaving well; neither overheating nor weakening substantially, despite a weak housing sector. This offers additional support for Chairman Bernanke's current position of doing nothing with interest rates despite market expectations to the contrary. Don't Fight the Fed!
Doug Roberts is the Founder and Chief Investment Strategist for FollowtheFed.com, an independent research firm focusing on investment strategies using the Federal Reserve's impact on the stock prices. He previously held executive positions at Morgan Stanley Group and Sanford C. Bernstein & Co.
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