Market Recap: Stocks Jump on Jobs
- Posted on February 3, 2012 at 4:28pm by
Becket Adams
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Markets closed up on Wall Street today:
- Dow +1.23 percent
- S&P +1.46 percent
- Nasdaq +1.61 percent
- Oil +1.43 percent
- Gold -1.77 percent
On the commodities front:
- Oil (NYSE:USO) rose to $97.74 a barrel
- Gold (NYSE:GLD) fell to $1,728.20 an ounce
- Silver (NYSE:SLV) down 1.64 percent to settle at $33.62
(Related: Obama Administration to Shut Down Fannie and Freddie)
Today’s markets were up because:
1) Jobs: The Labor Department today lowered the U.S. unemployment rate by two-tenths of a point to 8.3 percent, the lowest it’s been since February 2009. January data showed non-farm payrolls to have risen a whopping 243,000, wildly exceeding even the most optimistic of economists’ projections.
However, as mentioned earlier on The Blaze in the Morning Market Roundup, there are some figures to keep in mind before one gets too ecstatic about the Labor Department’s new numbers.
Via Zero Hedge:
A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that’s not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation. As for the quality of jobs, as withholding taxes roll over Year over year, it can only mean that the US is replacing high paying FIRE jobs with low paying construction and manufacturing. So much for the improvement.
2) Services: The January installment of the Institute for Supply Management’s services index rose to 56.8, from a revised 53.0 in December, the highest level since February 2011. The services sector was shown to have expanded at a faster rate last month, boosted by new orders, while the ISM’s employment index rose from 49.8 in December to 57.4 in January, the highest level in six years.
3) Financials. Bank of America, Wells Fargo, JPMorgan and Goldman Sachs led today’s rally despite being named in major lawsuits today. Goldman is alleged to have defrauded investors in a 2006 offering of mortgage-backed securities, while the former three have been accused by New York Attorney General Eric Schneiderman of fraudulently using an electronic mortgage database to avoid the need for recording mortgage transfers. Citigroup and Morgan Stanley also joined in the rally, each rising more than 3 percent.
[Editor’s note: portions of the above originally appeared on Wall St. Cheat Sheet.]
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expatinontariocanada
Posted on February 4, 2012 at 9:42amUS employment numbers are a SCAM! The BLS report Table B-1 (page 32) shows non-farm payroll seasonal adjustment expected a LOSS of 2.9 million jobs in January from December. Since the US only LOST 2.657 MILLION jobs in January they could report a gain of 243,000! Now I‘m going to check previous Januarys’ “seasonal adjustments” and see if this percentage, about 2% “adjustment” from December to January is consistent.
If I were a betting man I‘d bet it’s not 2% every year they EXPECT to lose that many jobs between December and January so they can make the jobs number be WHATEVER THE HELL THEY WANT IT TO BE. Criminals, that’s what they are and so are the LameScream media, all of them, who can’t see through this horsepucky.
Report Post »HumbleMan
Posted on February 4, 2012 at 3:20pmPerhaps more to the point: According to John Lott (http://johnrlott.blogspot.com/) January saw the largest number ever of people “giving-up” hunting for a job. Over 1.2 million Americans who were unemployed and seeking employment “stopped looking”. The previous high was about a half a million.
Kindof dwarfs the quarter million “new” jobs.
Report Post »hempstead1944
Posted on February 4, 2012 at 9:02amThere is more to the numbers than revealed…..get ready for the “drop” because it is sure to come….
Report Post »The Eradicator
Posted on February 4, 2012 at 12:39amSheep…sheep will hear this number. they will say, look…behold what he hath done…He hath broughteth new lows to unemployment.
Now, in the real world…I am part of a corporation. At the helm is a wealthy man. I do NOT begrudge him of his wealth, because without it, I would not have a job…J.O.B., for those who do not know how to spell it.
Yes, there are days when I cuss “The Man”, but that is normal is everyday America. BUT, because of this man and his dream, I have been able to pay my mortgage for the last several years. You see, I have what some may call, accountablilty.
Sadly, as of late, my employer has seen fit to send US jobs overseas…Why might you ask…Well, its because this @$$ clown of a President and his admin are doing absolutely nothing to grow the US domestically.
For those who do not agree with me, ask yourself this…by waht precent ar eyou better off than 4 years ago?…
Please dont give any BS answers. I was in the housing biz…and I picked myself up and moved on.
Have you?…If you haven’t, why not?…Whats holding you back?…
These numbers are false, folks. The number of people looking for jobs have quit, more or less because they do not care anymore.
I want America to succeed. I dont hink anyone on here wants us to fail. But you have to keep a sense of accountabilty. You can make yourself better if you want to, plain and simple. Yes, there are baracades, but you must learn to work around them.
Pick yourself up.
Report Post »lionslayer44
Posted on February 4, 2012 at 12:03ameven if the market is up the dollar has been devalued by nearly 40% that puts it just above 8000pts. include rising prices on everything and the truth comes out its all fake. houses that were once 150k are now 50k the crappy thing is a new truck costs 40-50k. the banks wont sell you a house but a vehicle that loses half its value once its off the lot no problem. what a freaking bunch of crap. BE PREPARED COLLECT FOOD, WATER (FILTERS), AMMO!!!! GOD BLESS AMERICA!!!
Report Post »The Eradicator
Posted on February 3, 2012 at 11:54pmI believe in these numbers like I believe Greece is under control of their debt.
Evey d–n day, I haer this:
The DOW is up because the Euro finaincial crisis seems to be taking a turn for the best.
Next day: The DOW is down because financial talks in Greece have faded.
Day after next day: The DOW is up in hop e that fears of an economic collapse in Europe is unlikely.
Day after the next day: The DOW is down amid fears that Europe is slipping into default.
I can go on and on. Truth is, this whole thing is a hoax. The DOW is being ficticously pumped with reserve money in hopes to lure private investors in.
Of course, the sheep will claim, it is because of Obama that the unemployment is under 8%. Praise be Obama, master and rule rof everything.
Stock is up, unemployment is down, hey!…Let the good times roll!!
Report Post »Mateytwo Barreett
Posted on February 3, 2012 at 11:43pmYipee!! I’m going to RUN tight out and get more stocks. . The gun shop opens at 9:00 on Saturday.
Report Post »Seriously, anybody see anything, hear anything, that SHOULD drive the market up 1500 points in , what, a month? I guess those TARP monies are coming out- and just in time for the campaign. Another happy, amazing coincidence!
ZeroOff4impact
Posted on February 3, 2012 at 8:39pmThis is bad… Collapse is imminent. Watch how fast this money disappears into thin air. You cannot lie your way into the truth.
Report Post »seeker9
Posted on February 3, 2012 at 10:27pmThink you are a bit early. Good time to take some profits as a pull back is likely. The big players, who drive the market know there is still time to make big money. Big tax increases start in 2013 unless something changes. Look for big correction in last quarter 2012.
Report Post »ALL4FREEDOM
Posted on February 3, 2012 at 8:08pmAbout the unemployment numbers: there are lies, damned lies, and statistics, and then there’s the Obummer administration, creator of damned statistics!
Report Post »Sicialian Eyeball
Posted on February 3, 2012 at 7:37pmIt’s a good thing the Ground Hog doesnt give financial advice.
Report Post »Outlaw_Josey_Wales
Posted on February 3, 2012 at 6:18pmBaltic dry index down over 60% in the last month. Jan 3 BDI=1624 Feb 3 BDI=647
could be a world wide economic slow down.
http://www.bloomberg.com/quote/BDIY:IND
Report Post »peteto1
Posted on February 3, 2012 at 5:38pmUnemployment figures could be at 5.5% by October and Obama will STILL get his a%# thrown out of office!! Nobody (other than welfare bums, ILLEGAL aliens, and union goons) believe the numbers coming from the Administration. They’ve been “cooking the books” since they took office (e.g.- 1.2 MILLION “dropped out” of the workforce this month; Obama Admin. doesn’t count FOOD or GAS in inflation numbers any more, etc.) and the voters know it. Urkel is going to get pummeled in November because he’s an outed Marxist, exposed by his OWN actions/policies and words…………..
Report Post »LIBS-ARE-DINGLEHEADS
Posted on February 3, 2012 at 5:36pmSell!
Report Post »LIBS-ARE-DINGLEHEADS
Posted on February 3, 2012 at 5:35pmTranslation: SELL/FADE the rally.
Those that don’t? SUCKERS!
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