If the jobs report comes in showing more jobs added...
The overall market will either (1) rally because it shows a strong economy lessening the chance of recession in 2007 or (2) dump because a strong economy means no rate cut.
If the jobs report comes in showing less jobs added...
The overall market will either (1) rally because the fed will now cut rates because of a weakening job picture or (2) dump because the jobs report reflects a weakening economy that may go into recession in 2007.
I am betting that the market is more scared of a stronger then a weaker jobs report. The ADP report came in especially strong.
The market wants interest rates to be cut more then a stronger picture in jobs. Therefore, the report needs to come in showing that less jobs were added for the market to rally. A strong jobs picture means that the Fed might not cut rates and may even raise rates in the future.
Stocks mostly lower on jobless claims
Staff and agencies
07 December, 2006
By TIM PARADIS, AP Business Writer 3 minutes ago
NEW YORK - Stocks were mostly lower Thursday as weakness in energy and consumer discretionary stocks offset a positive weekly jobs report that helped ease concern about weakness in the job market.
Wall Street wants the job market to hold up to safeguard consumer spending, but investors also are concerned that high employment levels will make it more expensive for businesses to hire and retain workers. As the Federal Reserve Federal Reserve has said it remains concerned about inflation, a rise in the cost of hiring and retaining workers could make it harder for the central bank to justify a cut in short-term interest rates.
In late morning trading, the Dow Jones industrial average was up 0.80, or 0.01 percent, at 12,310.05, having given up earlier gains as weakness in energy, consumer discretionary and technology stocks added to overall selling pressure on Wall Street.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.48 percent from late Wednesday. The dollar was mixed against other major currencies, while gold prices fell.
Raich said the latest job figures show the economy to be resilient. "Itâs in a great spot right now in that itâs not too strong and not too weak."
Wall Street was pleased when the Labor Department report met expectations. The agency said jobless claims filed last week fell to 324,000, down 34,000 from the previous week. The decline had been expected by economists who regarded the previous weekâs jump as an anomaly.
Exxon Mobile Corp., a Dow component, was one of the averageâs weaker components and was down 96 cents at $75.35.
Auxilium Pharmaceuticals Inc., a specialty drug maker, temporarily halted a late-stage clinical trial to investigate a manufacturing issue. The trial is for an injectable enzyme to treat Dupuytrenâs contracture, an abnormal thickening of tough tissue in the palm and fingers that can cause the fingers to curl. The stock fell $1.15, or 9.5 percent, to $14.45.
Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange New York Stock Exchange, where volume came to 444.5 million shares.
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The overall market will either (1) rally because it shows a strong economy lessening the chance of recession in 2007 or (2) dump because a strong economy means no rate cut.
If the jobs report comes in showing less jobs added...
The overall market will either (1) rally because the fed will now cut rates because of a weakening job picture or (2) dump because the jobs report reflects a weakening economy that may go into recession in 2007.
I am betting that the market is more scared of a stronger then a weaker jobs report. The ADP report came in especially strong.
The market wants interest rates to be cut more then a stronger picture in jobs. Therefore, the report needs to come in showing that less jobs were added for the market to rally. A strong jobs picture means that the Fed might not cut rates and may even raise rates in the future.
Stocks mostly lower on jobless claims
Staff and agencies
07 December, 2006
By TIM PARADIS, AP Business Writer 3 minutes ago
NEW YORK - Stocks were mostly lower Thursday as weakness in energy and consumer discretionary stocks offset a positive weekly jobs report that helped ease concern about weakness in the job market.
Wall Street wants the job market to hold up to safeguard consumer spending, but investors also are concerned that high employment levels will make it more expensive for businesses to hire and retain workers. As the Federal Reserve Federal Reserve has said it remains concerned about inflation, a rise in the cost of hiring and retaining workers could make it harder for the central bank to justify a cut in short-term interest rates.
In late morning trading, the Dow Jones industrial average was up 0.80, or 0.01 percent, at 12,310.05, having given up earlier gains as weakness in energy, consumer discretionary and technology stocks added to overall selling pressure on Wall Street.
Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.48 percent from late Wednesday. The dollar was mixed against other major currencies, while gold prices fell.
Raich said the latest job figures show the economy to be resilient. "Itâs in a great spot right now in that itâs not too strong and not too weak."
Wall Street was pleased when the Labor Department report met expectations. The agency said jobless claims filed last week fell to 324,000, down 34,000 from the previous week. The decline had been expected by economists who regarded the previous weekâs jump as an anomaly.
Exxon Mobile Corp., a Dow component, was one of the averageâs weaker components and was down 96 cents at $75.35.
Auxilium Pharmaceuticals Inc., a specialty drug maker, temporarily halted a late-stage clinical trial to investigate a manufacturing issue. The trial is for an injectable enzyme to treat Dupuytrenâs contracture, an abnormal thickening of tough tissue in the palm and fingers that can cause the fingers to curl. The stock fell $1.15, or 9.5 percent, to $14.45.
Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange New York Stock Exchange, where volume came to 444.5 million shares.
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