The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow Removal
It looks like we may have a bit of a rally on this final trading day of the first week of December thanks to the nonfarm payroll report. During November, 11,000 jobs were shed, far fewer than the expected 100,000 and the fewest lost jobs since December 2007. And the unemployment rate dropped to 10%.There is a word of caution, as some economists believe that November's payroll figures could appear better because of the way the government adjusts the data for seasonal factors. That's the only wet blanket I will throw on this news, as the "seasonal factor issue" does not impact the jobless rate.
The question is whether these these added jobs "real" or simply temporary/seasonal ones? While I'm banking on the temp/seasonal category, as I'm sure others do, it shouldn't lessen the impact of this morning's news.
I do want to caution that we should not become irrationally exuberant and begin declaring this news the end of the economic crisis. Just as these numbers may have been artificially inflated due to temporary/seasonal workers, we could see unemployment numbers artificially boosted once these workers lose these temporary jobs. In the end, it will all even out.
So what does this mean in the context of the bigger economic picture? Honestly, very little. The news will push stocks higher today and possibly into next week. But attention will turn to holiday sales in the retail sector as it should during this time of year.
Also, we should not lose sight of the fact that unemployment is still at 10%. Nevertheless, a potential triple-digit rally in the face of stronger-than-expected results is far better than a triple-digit drop because of worse-than-expected news. In economic turmoil, take what you can get and don't question the data, right? So I won't.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
12-04-2009 @ 1:57PM
clikdawg said...
"In economic turmoil, take what you can get and don't question the data, right?"
This is the mind-set that resulted in that horse being dragged into Troy that one time ...
Seriously though, Mark, do you really think that swallowing whatever is poured down one's throat (I speak of Normal People, here, not those who are actually PAID to swallow it) is a prescription for long life and good health whether physically, financially, or otherwise?
Really?