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Jobs

March 4, 2011 – 5:58 pm

The number for February was 192,000 new jobs which was less than expected. The sting of that weaker number was muted because the jobless rate fell to 8.9% instead of rising to 9.1% as expected. Also, the previous two months’ job creation numbers were increased by a total of 58,000. Still we need 150,000 per month just to keep up with the growth of our labor market.

The stock market didn’t like what it saw but it also was not shocked by the number. I think it reacted more to the rise of oil prices to $102 per barrel.

Despite the tepid jobs report and rising oil prices the economy is on track to expand at a faster pace than in recent months. That means earnings for corporations are going to continue to expand. The rate of expansion may level off but stock prices have not outstripped earnings in the last year so the overall stock market is not expensive.

What do you think will happen when oil prices start to fall? You will need to be invested when that happens.

Good Trading
Steve Peasley

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