Even Germany slides toward recession, but the Dow is up 72 points at this moment, shortly before the market closes.
Friday, December 7, 2012
After an initial burst of elation and a short rally in stocks, the market has gone bust, as the devil is still in the details. The details aren't pretty!
First the headline from WSJ:
1) Job quality was poor -- The jobs created were low-wage jobs in hospitality, waste management, retail, and restaurants.
"In light of the composition of today's NFP pickup, driven by retail, waste and administrative and hospitality and leisure, all low-wage jobs, even as Construction jobs posted their first decline in many months on the "housing recovery" and on Hurricane Sandy rebuilding, we refreshed the chart showing that there is a quality not just quantity component to the jobs number. Sadly, the quality, in the form of Y/Y change of average hourly earnings, continues to be non-existent."
2) Geriatric Jobs - Jobs were created for workers over the age of 55, but for workers below that age, there was a decline.
from Zero Hedge:
"What the granular data shows is that instead of a 146K gain in November, there was actually a drop of 114K jobs when broken down by worker "vintage." But where it gets simply stupid, is that of the 4 age group buckets (16-19, 20-24, 25-54, and 55-69), the biggest gainer continued to be America geriatric work force, which added 177 jobs. As for that key segment of the workforce, the 25-54? Jobs here declined by a whopping 359K in November. And this is good news?
Bill Gross tweeted:
"Gross: Equity market rallies b/c 200,000+ workers stop looking for jobs & the U-Rate hits 7.7%. Be careful, Europe in recession, US slowing.
— PIMCO (@PIMCO) December 7, 2012"What was initially perceived as good news, wasn't!
Wednesday, December 5, 2012
Stocks went red after being higher throughout the night following ADP's disappointing jobs report this morning.
Last night at a very odd hour, for the second week in a row, stocks ramped up at an hour when most Americans were asleep. But stocks just went red following news that jobs are beginning to reflect a higher probability of an oncoming recession.
Monday, December 3, 2012
It's not just manufacturing, either. Employment has begun to contract as well!