Dow soared 562 following recent selling, advancers over decliners an impressive 8-1 & NAZ leapt 205. The MLP index soared 9+ to the 237s & the REIT index went up 2+ to 322. Junk bond funds rose & Treasuries retreated. Oil shot up 2 to the 48s & gold was sold, dropping 11 to 1283.
AMJ (Alerian MLP Index tracking fund)
Stocks climb on big jobs report beat, positive news on China's economy
Trade representatives from the US & China to hold talks Mon. The US trade delegation led by Deputy Trade Representative Jeffrey Gerrish will visit China Mon-Tues, according to China's Ministry of Commerce. The & sides are working to resolve disputes on trade & other economic issues. The ministry said in a statement that vice minister-level officials from the 2 countries spoke on the phone & decided on the trip that aims to pick up on the consensus reached by the leaders in Argentina last month. An earlier report about the trip said that if there is progress in negotiations, Chinese trade officials led by Vice Premier Liu He will follow up with talks in DC the following week. China & the US reached a truce on the trade war & agreed to settle disputes in 90-day talks that will end on Mar 1.
Federal Reserve Chairman Jrome Powerll pledged that the central bank will be watching how the economy performs this year & will adjust policy should growth slow unexpectedly. Powell along with his immediate predecessors, Janet Yellen & Ben Bernanke, spoke today at the American Economic Association's annual meeting in Atlanta. Financial markets have been in turmoil over the past several months, in part over concern whether the Fed was on an aggressive rate-hiking path. Powell himself has helped to fuel some of that speculation & today offered remarks to show that Fed policy will take into account economic conditions and be adjusted accordingly. “As always, there is no preset path for policy,” Powell said. “And particularly with muted inflation readings that we’ve seen coming in, we will be waiting as we watch to see how the economy evolves.”
After weeks when nothing seemed to be going right for stocks, the pendulum swung back today. The news was all good. No, make that great. However fundamental problems have not evaporated. The jobs report in a month for Jan will be so-so, maybe worse if the gov shutdown continues. Trade negotiations still need a lot of work, although changes made by China are encouraging. And forecasting moves by the Fed is always difficult, few seem to get it right consistently. In the meantime, investors can enjoy today's market advance.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 48.74 | +1.65 | +3.5% |
| GC=F | Gold | 1,278.60 | -16.20 | -1.3% |
Stocks surged as the Labor Dept
reported that US employers created vastly more jobs last month than
expected. The Dow topped 500 after the Labor Dept reported that American employers added 312K jobs in
Dec. That gain, coming on the heels of the previous session's
660 loss, vastly exceeded the forecast for an
increase of 177K jobs, even on the heels of a tumultuous month for
the markets that saw the Dow & S&P 500 post their worst
performance since the 1930s. Equities
were also lifted by China, whose premier said today that the country
will reduce taxes, fees & banks' reserve requirement ratio to boost
the nation's weakening economy. That weakness has hit demand for US
products. In addition, markets benefited from
an announcement by China's Commerce Ministry, which said a US trade
delegation led by Deputy Trade Representative Jeffrey Gerrish will visit
China Mon. The 2 sides are working to resolve disputes on trade & other economic issues. Apple shares (AAPL), a Dow & NAZ stock, climbed more than 2%, rebounding from yesterday's 10% loss. In Asian trading, optimism about trade talks with the US helped sooth investor nerves. China's Shanghai Composite Index closed up 2.0% & higher by 0.8% for the week. Hong Kong's Hang Seng index ended up 2.2% & was up 0.5% for the week. Japan's Nikkei had its first trading session of the new year & finished the day down 2.3%. In European markets, London's FTSE added 1.24%, Germany's DAX rose 1.7% & France's DAC gained 1.2%.
Stocks climb on big jobs report beat, positive news on China's economy
US employers added 312K jobs in Dec, blowing past expectations for an increase of
177K jobs, even on the heels of a tumultuous month for the markets
that saw the Dow & S&P 500 post their
worst performance in over 80 years. The
unemployment rate rose to 3.9%, while the labor force
participation rate also rose slightly to 63.1% from 62.9%
during the month. Average hourly earnings meanwhile rose by 11¢ to
$27.48. Over the year, average hourly earnings have increased by a total
of 84¢ (about 3.2%). Although
experts categorized the gains as unsustainable, they also said it meant
an economic recession may not occur as soon as once believed. Jobs numbers come on the heels of a report yesterday which revealed the private sector added 271K jobs in Dec, soaring past expectations of 178K jobs. Analysts anticipated that unemployment would hold
steady at 3.7%, the lowest number in nearly 50 years, while
forecasting the creation of 177K jobs. However, the
rise in the unemployment rate likely stemmed from a jump in the labor
force participation rate, not a shortage in new jobs, because at
63.1%, it's at the highest level in more than a year & tied for
the highest rate since 2013. The
stronger-than-expected number, applauded by Pres Trump
on Twitter, comes in the midst of concerns about a softening economy.
US economy added 312,000 jobs in December, blowing past expectations
Trade representatives from the US & China to hold talks Mon. The US trade delegation led by Deputy Trade Representative Jeffrey Gerrish will visit China Mon-Tues, according to China's Ministry of Commerce. The & sides are working to resolve disputes on trade & other economic issues. The ministry said in a statement that vice minister-level officials from the 2 countries spoke on the phone & decided on the trip that aims to pick up on the consensus reached by the leaders in Argentina last month. An earlier report about the trip said that if there is progress in negotiations, Chinese trade officials led by Vice Premier Liu He will follow up with talks in DC the following week. China & the US reached a truce on the trade war & agreed to settle disputes in 90-day talks that will end on Mar 1.
US-China trade talks scheduled for Monday in Beijing
Federal Reserve Chairman Jrome Powerll pledged that the central bank will be watching how the economy performs this year & will adjust policy should growth slow unexpectedly. Powell along with his immediate predecessors, Janet Yellen & Ben Bernanke, spoke today at the American Economic Association's annual meeting in Atlanta. Financial markets have been in turmoil over the past several months, in part over concern whether the Fed was on an aggressive rate-hiking path. Powell himself has helped to fuel some of that speculation & today offered remarks to show that Fed policy will take into account economic conditions and be adjusted accordingly. “As always, there is no preset path for policy,” Powell said. “And particularly with muted inflation readings that we’ve seen coming in, we will be waiting as we watch to see how the economy evolves.”
After weeks when nothing seemed to be going right for stocks, the pendulum swung back today. The news was all good. No, make that great. However fundamental problems have not evaporated. The jobs report in a month for Jan will be so-so, maybe worse if the gov shutdown continues. Trade negotiations still need a lot of work, although changes made by China are encouraging. And forecasting moves by the Fed is always difficult, few seem to get it right consistently. In the meantime, investors can enjoy today's market advance.
Dow Jones Industrials
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