Business

Market Recap: Europe Dampens Euphoria Over “Lower” Unemployment Rate

Markets closed mixed on Wall Street today:

  • Dow -0.01 percent
  • S&P -0.02 percent
  • Nasdaq +0.03 percent
  • Oil +0.81 percent
  • Gold +0.56 percent

On the commodities front:

  • Oil (NYSE:USO) climbed to $101.01 a barrel
  • Gold (NYSE:GLD) up to $1,749.50 an ounce
  • Silver (NYSE:SLV) fell 0.49 percent to settle at $32.60

(Related: Sarkozy Calls for New Treaty to Unify Euro Zone)

Today’s markets were mixed because:

1) Unemployment Rate: The mood on Wall Street was positive after the Labor Department said the U.S. unemployment rate had eased to 8.6 percent in November as employers added 120,000 new jobs, making last month’s unemployment rate the lowest since March 2009.

However, the 8.6 percent figure is no reason to celebrate. It is only that low because of the number of people dropping out of the workforce and temporary holiday hiring. These two figures skew the data in favor of a “low” unemployment rate.

But despite this, it appears that investors were still satisfied with the meager pickup in hiring, and markets opened sharply higher Friday morning, with all three of the major indices topping 1 percent in early trading.

2) Europe: News out of Europe dampened that early euphoria, putting investors on edge and leading to sharp declines off the morning’s highs. Talk of a possible downgrade to Spain’s credit rating spooked investors and sent the Spanish 10-year yield up to 5.7 percent. Also, reports that Republicans would try to block any move by the European Central Bank to lend funds to the International Monetary Fund to aid Europe’s cash-strapped countries further worried investors who have become disillusioned with the government and partisan politics. Conservative lawmakers are against the Washington-based IMF’s involvement because it could leave U.S. taxpayers footing the bill.

3) Banks: Bank stocks were among the top gainers today, with Bank of America and JPMorgan leading the Dow’s early advance. Morgan Stanley, Goldman Sachs, and Citigroup shares all closed the day sharply higher despite the market’s general decline in the afternoon.

[Editor’s note: portions of the above were originally published on Wall St. Cheat Sheet.]

Comments (12)

  • jerimiah41
    Posted on December 5, 2011 at 5:48pm

    I just continue to pray for our country and the ignorant and illiterate of the occupiers and our government. As Jesus said even on the cross with his last breaths ” Father, please forgive for
    they not what they do”. I believe this really applies to these two groups. What do most of you
    think? Are these people likely to be Heaven or Hell bound given what they are doing per the scriptures? I do not judge and our Lord says “Judge only if you are willing to be judged on your
    actions as well. He says the rich will have a hard time going to heaven! Do you know why he
    would say this? He also says the meek shall inherit the earth. Do you see any meek in these two
    groups? Enough said. Merry Christmas everyone and God Bless. I hope we do not lose the true
    meaning of this time of year.

    Report Post »  
  • olddog
    Posted on December 5, 2011 at 8:29am

    Since When Can We believe any government figures??? Look around your community at the number of closed business..

    Report Post » olddog  
  • Atokaite
    Posted on December 4, 2011 at 8:19am

    You can expect the psuedo UN employment rate to further decline. The Dems need it to be in the 5-6% range in order to satisfy the Kool Aid Drinkers that Obama’s economic packages are jus now kicking into th economy. Expect the Dems to point out that Reagon’s economic packages too that long also.
    IN FACT. The UN employment figures are skewed by the method of counting. We all know that, but ask a individual standing in the dole line that. He does not know, nor care. He is UNemployed.
    Finally, The OBAMA election base has shifted. Note the abandonment of the ” White/Blue Collar workers, the very ones that supported him last time. Focus instead on the Entitlement 48-54 % of the population, that is where the votes are, manipulatable, easy to buy, and easy to control AKA OWS…
    That coalition, plus the 13% of avid Kool Aid Drinkers, who will vote Left every time and often, is enough to slide the 2012 election thru.
    And, to just make sure, bring on a full blown crisis that “Could” preclude a viable election, and you have the Leftists in office forever.
    Semper Fi

    Report Post » Atokaite  
  • ObserverOnTheHill
    Posted on December 3, 2011 at 7:27pm

    Find out how the FED “cooks the books” here

    http://teapartyeconomist.com/2011/12/03/how-the-fed-buy-the-economists-support/

    Report Post »  
  • KangarooJack
    Posted on December 2, 2011 at 10:46pm

    I invest in potable water and long shelf life food…only way to be sure. lol

    Report Post » KangarooJack  
  • Jenny Lind
    Posted on December 2, 2011 at 7:56pm

    Oh yeah! Goody, goody, see me get all excited! I am sure we all are, right?

    Report Post »  
  • lukerw
    Posted on December 2, 2011 at 7:16pm

    The Government numbers… are BS!

    Report Post » lukerw  
    • kcinco
      Posted on December 2, 2011 at 9:12pm

      The CEO needed to hire a new corporate accountant.
      So he had the HR department send him the 3 best applicants to interview
      After chatting with the first applicant, the CEO said, “What is 2 and 2?” The applicant quickly said, “Four”. The CEO said, “Thank you” and asked for the next applicant.
      After chatting with the second applicant, the CEO said, “What is 2 and 2?” The applicant thought awhile and said, “Twenty Two”. The CEO said, “Thank you” and asked for the next applicant.
      After chatting with the third applicant, the CEO said, “What is 2 and 2?” The applicant looked him in the eye and said, “What do you want it to be?”. The CEO said, “You’re hired”

      Report Post » kcinco  
  • Baddoggy
    Posted on December 2, 2011 at 6:23pm

    If you have tour money in the stock market, you deserve the beating you are about to get. I quit a job last year to get my 401K back so I could buy silver and gold instead of losing all of my retirement. People called me stupid. I have made more money on the upticks than i would have made in salary…Yea…dumb like a fox!

    Report Post » Baddoggy  
    • seeker9
      Posted on December 2, 2011 at 7:29pm

      Congrats! “on the upticks”, does that mean you trade in and out? Did you know that there are short ETF’s to make money on the down side with stocks? I pay $7 a trade for my transactions, so one can go in and out fairly easily. BEWARE next week!

      Report Post » seeker9  
  • Snowleopard {gallery of cat folks}
    Posted on December 2, 2011 at 6:06pm

    So basically the economic destruction envisioned by Soros and Obama is on the way to completion.

    Report Post » Snowleopard {gallery of cat folks}  
    • Cosmos102
      Posted on December 2, 2011 at 10:08pm

      Be sure to tune to to Glenn Beck on Monday. Major investment advice is on the way.

      Report Post » Cosmos102  

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