Summary: With strong numbers in the latest job report, experts expect the Feds to raise the interest rate during the next meeting in a few days.
Another month of strong job gains has boosted the stock markets. The Dow Jones industrial average was up 2.1 percent and the Standard & Poor’s 500-stock index also rose 2.1 percent. The Nasdaq composite index also went up 2.1 percent.
The Labor Department reported an additional 211,000 jobs in November with especially large gains in the retail and construction industries. This is despite low oil prices and low demand overseas. Now it is expected that the federal interest rate will be raised at the next meeting. A poor job report is pretty much the only thing that could have prevented that.
Luke Bartholomew, an investment manager for Aberdeen Capital Management, says it is an obvious conclusion for the Feds to raise the interest rates, “It would have taken a really catastrophically bad number to put the Fed off today. It’s a question of what the path looks like next year.”
When looking at the S&P 500 sectors, nine out of ten rose with energy being the only one that fell. Avon, a beauty product company, had their stocks jump as talks of a sale to private equity Cerberus Capital Management hang in the air. After Norfolk Southern rejected a $28.4 billion offer from Canadian Pacific, their shares dropped 1.1 percent.
With a strong holiday season hitting retailers and spreading to other industries, next year should expect a strong start.
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Photo: blog.action.orgNovember Posts Another Strong Job Report by Amanda Griffin