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Stocks rally to end bumpy week on an upbeat note

  • Stocks rallied for a second straight day, shrugging off a disappointing nonfarm payrolls report as "bad, but not that bad."
  • The rally erased Monday's big drop and pushed all three leading indexes into positive territory for the week; small caps have not enjoyed an equally robust rebound, as the Russell 2000 remains 1.3% lower for the week.
  • Mitigating the weak headline job growth number were a lower unemployment rate and a slight rise in the labor participation rate; the report also showed increased employment in construction, and a decline in government work.
  • Sentiment is enjoying a boost from earnings results, which show S&P 500 companies are on track to print average EPS gains of 9%-10%.
  • A rebound in the dollar/yen pair trade again occurred in conjunction with the rebound in futures and continued into the session.
  • The growth acceleration view didn't resonate as much in the fixed income market, where Treasury prices rose, sending the 10-year yield falling 2 bps to 2.681%.
Comments (3)
  • Moon Kil Woong
    , contributor
    Comments (11067) | Send Message
     
    ALso great news: Total consumer credit rose by $18.8 billion to $3.1 trillion, the Federal Reserve said on Friday. That was the biggest gain since February.

     

    Economists polled by Reuters had expected consumer credit to rise by $12 billion in December.

     

    Revolving credit, which mostly measures credit-card use, rose by $5 billion in December after climbing $465 million in November. Revolving credit figures can be volatile.

     

    Lever us up. It is strange how such news is good news in the US where other countries try to stamp out rampant short term borrowing at usury rates (over 10% annually) and condemns others like China of shadow banking when they borrow in excess of normal bank rates.
    7 Feb, 10:39 PM Reply Like
  • june1234
    , contributor
    Comments (2550) | Send Message
     
    Taper will continue as will bumpiness latter will be the theme for 14, year CBs across the globe continue tapering. BLS totaled up its revisions job for job numbers going back years showing economy added more jobs than thought(regardless of quality of those jobs) that is the kind of data the Fed uses to make decisions. And the other day Draghi said ECB stands ready to take additional measures bumpy it will be, stay tuned volatility.
    8 Feb, 05:52 AM Reply Like
  • sl100
    , contributor
    Comments (110) | Send Message
     
    Also corporate debt has now reached twice the level from 2007. And additional 145Billion was issued in Jan. Daily pump on biggest stocks like AAPL and GOOG and short squeeze stocks make the news to keep the heard in the game.
    8 Feb, 11:12 AM Reply Like
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