Stocks got pummeled yesterday on Wall Street and around the globe. Debt and economic fears sent the Dow Jones Industrial Average down 268.37, or 2.6 percent, to 10,002.18. The broader Standard & Poor’s 500 index fell 34.17, or 3.1 percent, to 1,063.11, while the tech heavy Nasdaq composite index slid 65.48, or 3 percent, to 2,125.43. The Russell 2000 index of smaller companies fell 20.98, or 3.4 percent, to 589.68.

Morning Outlook

Wall Street is heading sharply lower once again Friday as the market awaits the critically important jobs report. Debt fears continue around the globe and have made there was to U.S. markets over the past few days. So far in premarket action, Dow Jones industrial average futures tumbled 63, or 0.6 percent, to 9,916. Standard & Poor’s 500 index futures dropped 7.80, or 0.7 percent, to 1,053.90, while Nasdaq 100 index futures fell 4.75, or 0.3 percent, to 1,730.00. The market is in free fall since the 15 month highs were hit in mid January.

Regardless of the jobs reading this morning, the Labor Department is expected to revise their jobs figures for the past year totalling some 800,000 additional jobs have been lost. We have now lost nearly 8 million positions since the start of the recession in December 2007, over two years ago. To get the unemployment rate to 6 percent, the economy would have to have a net job gain of about 200,000 every month until 2016. It is staggering figures like this that create the new normal of unemployment at around 7 percent.

We are just a few good reading from turning the whole mood and narrative of the country around. However I dont think today will be the start.

Currencies and Commodities

The greenback is soaring in trading this morning, proving once again that despite our massive debt levels, it is the true reserve currency and safe haven for investors. The dollar rose 0.4604% at 89.465 yen in the currency market. The euro depreciated 0.1939% to $1.3696 while the pound lost 0.4062% to $1.5690. Gold fell $7.70 to $1055.30 an ounce, while silver dropped 1.27% at $15.15. Light, sweet crude for March delivery fell 6 cents to $73.08 per barrel on the NYMEX; a 0.08% decline.

Economic Calendar

8:30 AM
Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. Analysts expect 5,000 jobs to have been gained in January, while the unemployment rate rises from 10% to 10.1%.

The average hourly work week is suppose to remain level at 33.2 hours. Once again, we would like to see an increase in the work week and in temporary help, which are all precursors to further full time employment.

Wall Street finished mixed on Thursday in uneven trading, as traders positioned themselves for Friday’s jobs report. Hitting new 15 month highs, the Dow Jones industrial average rose 33.18, or 0.3 percent, to 10,606.86, while the broader Standard & Poor’s 500 index rose 4.55, or 0.4 percent, to 1,141.69. Tech was the laggard on the day as the Nasdaq composite index slipped 1.04, or 0.1 percent, to 2,300.05

Morning Outlook

Stocks markets around the world are up Friday morning as traders await the premarket government jobs report in the U.S. Many are hoping to see the first monthly job gains in two years. We ave a long way to go to get back where we were a few years ago, but you have to start somewhere! To me, the more important question is will we actually see hiring in the near future rather than just not losing jobs. Worker productivity is at record highs, while employment satisfaction is at record lows.

So far in premarket action, blue chip futures rose 9, or 0.1 percent, to 10,554. Standard & Poor’s 500 index futures rose 0.50, or less than 0.1 percent, to 1,138.00, while Nasdaq 100 index futures rose 2.00, or 0.1 percent, to 1,879.50. This is such a sharp reversal from prior months where we saw negative trading heading into the report. The optimism is definately high, and I hope the report delivers.

Currencies and Commodities

The greenback was mixed against other currencies, while commodities fell on the mercantile exchange. The dollar fell 0.1165% at 93.257 yen in the currency market. The euro depreciated 0.1059% to $1.4293 while the pound rose 0.3937% to $1.5996. Gold lost $11.10 to $1122.60 an ounce, while silver tumbled 1.14% at $18.13. Light, sweet crude for February delivery fell 30 cents to $82.36 per barrel on the NYMEX; a 0.36%.

Economic Calendar

8:30 AM
Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. Analysts expect a wash in December, while the unemployment rate rises from 10% to 10.1%. The range goes from a loss of 50,000 jobs in the month to a gain of 40,000.

In addition, lets see if we can get an improvement with other labor market indicators, including average hourly work week, and an increase in average hourly earnings.

3:00 PM
Consumer Credit: Measures the value of consumer credit outstanding. Changes in consumer credit indicate the state of the consumer’s finances and can forecast their future spending patterns. Credit availability is tight in the current environment at the same time as households cut back and deleverage their finances. The consensus for Novvember is a decline of $5 billion, after credit contracted $3.5 billion the prior month. This would be the 10th consecutive monthly contraction.

Market Summary

Wall Street was up slightly in the premarket and soared at the release of the November employment situation from the Labor Department. Equities ran, yields rose, while gold retreated on the stronger greenback. Bets rose on the street that this could expedite a rise in interest rates by the fed, as no one saw a number coming in this low.

Sounds good right? Well the market, once up well over 1% on all of the major averages gave back its gains, dipping into negative territory TWICE. However, there was green across the street not just because all three major averages ended up positive, but the greenback saw a resurgence as well. The rise in the dollar sent commodities lower and suffocated the earlier gains in the equity market.

The Dow Jones Industrial average ended with a gain of 22.75, or 0.2 percent, to 10,388.90 after crossing the 10,500 mark and setting a 2009 intraday high. The broader Standard & Poor’s 500 index rose 6.06, or 0.6 percent, to 1,105.98, while the Nasdaq composite index rose 21.21, or 1 percent, to 2,194.35.

The street is a weird place, you had a historic run up since March on middle of the road data, yet traders gave back hefty gains during the day’s session.

Gold fell for the first time this week, losing 4% or $78.80 to $1,169.50 an ounce, while crude oil for January delivery fell 99 cents, 1.2 percent to $75.57 a barrel.

Market Soars on Surprising Jobs Report

The employment situation hit at 8:30 and it had a major impact. It was extremely impressive, with only 11,000 jobs lost in November, down from the 130,000 estimate of economists. The unemployment rate, at its highest level in 26 years, ticked down from 10.2% to 10%, while we also saw a decline in the real unemployment rate to 17.2%.

Healthcare/education, as well as the service sector saw a net job increase in November (despite the downbeat ISM report on Thursday). The average hourly workweek ticked up 20 basis points to 33.2 in the month.

It was the 23rd straight month of job loss, however upward revisions next month could turn this figure positive. 7.2 million jobs have been lost since the recession began in December 2007.

Stocks sold off sharply in the final minutes of trading Thursday, once again showing uneasiness heading into Friday’s premarket employment situation. The Dow Jones industrial average fell 86.53, or 0.8 percent, to 10,366.15. The broader Standard & Poor’s 500 index fell 9.32, or 0.8 percent, to 1,099.92, while the Nasdaq composite index fell 11.89, or 0.5 percent, to 2,173.14.

Morning Outlook

Stock futures are slightly higher, but the jobs data will surely move the direction of trading in the premarket. Dow Jones industrial average futures rose 13, or 0.1 percent, to 10,365. Standard & Poor’s 500 index futures rose 1.90, or 0.2 percent, to 1,099.90, while Nasdaq 100 index futures rose 1.25, or 0.1 percent, to 1,781.50. Interesting that the rest of the world was mostly lower ahead of the data in the U.S.

The first Friday of the month, I love it. The jobs report will eventually determine if President Obama gets a second term, and whether or not we see a second stimulus of sorts. It is also a momentum shifter. You need to get people confident in their job before they will spend, whoch will create other jobs and chip away at this high rate. This will be the talk of the Christmas table like it was over the ThanksgivingIt is definately a slow and steady process for which the market does not want to see any setbacks. It is amazing, we are nearly 2 years past the start of the recession.

Currencies and Commodities

The dollar rose 0.0969% at 88.35 yen in the currency market. The euro appreciated 0.1495% to $1.5076 while the pound advanced 0.6968% to $1.6656. Gold lost $11.10 to $1207.20 an ounce, while silver declined 1.30% at $18.88. Light, sweet crude for January delivery fell 62 cents to $75.84 per barrel on the NYMEX; a 0.81% decline on demained concerns as a result of the unemployment rate.

Economic Calendar

8:30 AM
Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a %age of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. Analysts expect 100,000 jobs to have been cut in November, while the unemployment rate remains at 10.2%.

We also want to see the hourly work week creap up, and the additional hiring of temporary workers which are all signs of a laober market recovery.

10:00 AM
Factory Orders: Represent the dollar level of new orders for both durable and nondurable goods. The consensus is for a increase of 0.2% for the month of October, following a 0.9% rise in September; led by durable goods.

Market Summary

Wall Street futures dived in the premarket after the government released the October Employment Situation. However, stocks clawed their way back to post modest gains. The Dow Jones industrial average rose 17.46, or 0.2 percent, to 10,023.42. The Standard & Poor’s 500 index rose 2.67, or 0.3 percent, to 1,069.30, while the Nasdaq composite index rose 7.12, or 0.3 percent, to 2,112.44. The Russell 2000 index of smaller companies fell 0.80, or 0.1 percent, to 580.35.

The close signaled a winning week for the street, as the Dow and the S&P 500 index added 3.2 percent, while the Nasdaq rose 3.3 percent.

Gold advanced over 5% for the week, gaining $6.40 to settle at $1,095.70 an ounce on Friday, while crude fell $2.12 to settle at $77.87 per barrel on the NYMEX. The employment report really hammered the energy trade, as nearly 16 million people are now out of work.

In other energy trading, heating oil fell 5.41 cents to settle at $2.0035 a gallon. Gasoline for December delivery lost 6.34 cents to settle at $1.9243 a gallon. Natural gas for December delivery tanked 18.7 cents to settle at $4.595 per 1,000 cubic feet.

The Headline, Unemployment Surges Past 10%

The U.S. jobless rate unexpectedly jumped to a 26-1/2-year high of 10.2 percent last month, adding to pressure on the Obama administration to do more to tackle unemployment even as signs of recovery mount.

The Labor Department said Friday that employers cut 190,000 jobs in October, more than the 175,000 markets had expected but fewer than the 219,000 lost in September.

While that hinted at some improvement, economists had looked for the jobless rate to rise to 9.9 percent from September’s 9.8 percent. The real unemployment rate hit a record 17.5 percent in October.

Psychologically that double digit number will have a huge impact on consumers, worried about the security of their job and the ability to find gainful employment with so much slack in the economy. Retailers watch out…

Buffett Racks up Big Quarter

Berkshire Hathaway reported $3.2 billion, or $2,087 per share, in net income for the 3rd quarter. That’s up significantly from last year’s $1.1 billion, or $682 per share. The street had expected earnings per share of $1,308.25. Berkshire generated $29.9 billion revenue in the quarter, up from $27.9 billion a year ago.

Stocks soared Thursday on a string of good economic data and results from Cisco Sytems Inc (CSCO) setting the stage for today’s employment report for October. Investors shot the major averages to their highest level in weeks. The Dow rose 203.82, or 2.1 %, to 10,005.96, closing above 10,000 for the first time in November. The broader Standard & Poor’s 500 index rose 20.13, or 1.9 %, to 1,066.63, its fourth straight gain. The Nasdaq rose 49.80, or 2.4 %, to 2,105.32, while the Russell 2000 index of smaller companies rose 18.03, or 3.2 %, to 581.15.

Morning Outlook

Despite the weakness in many of the employment situations, which are released on the first Friday of the month, Wall Street has finished higher almost every session the report has been released this year. In the premarket before the release of the report, stocks were tilting slightly higher. Dow Jones industrial average futures rose 4, or 0.04 percent, to 9,958. Standard & Poor’s 500 index futures rose 0.40, or 0.04 percent, to 1,063.60, while Nasdaq 100 index futures rose 2.25, or 0.1 percent, to 1,721.50.

The confidence is there, now it is time for the report to deliver as employment is the #1 problem now and down the line for sustaining and growing this economy.

Currencies and Commodities

The dollar fell 0.0802% at 90.6400 yen in the currency market. The euro was flat with the greenback at 1.4871 while the pound dipped slightly to $1.6582 . Gold rose $4.60 to $1093.90 an ounce, while silver ticked up 0.60% at $17.51. Light, sweet crude for December rose 3cents to $79.65 per barrel on the NYMEX; a 0.04% advance.

Economic Calendar

8:30 AM

Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. Analysts expect 175,000 jobs to have been cut in October, while the unemployment rate rises from 9.8% to 9.9%.

The unemployment rate is the highest level since August 1983, however we all know the real unemployment rate is around 20%

3:00 PM

Consumer Credit: Measures the value of consumer credit outstanding. Changes in consumer credit indicate the state of the consumer’s finances and can forecast their future spending patterns. Credit availability is tight in the current environment at the same time as households cut back and deleverage their finances. The consensus for September is a decline of $10 billion, after credit contracted $12 billion the prior month.

Market Summary

The blue chips saw their biggest drop since summer time to close out the week, as concerns that the economic recovery won’t be robust enough to sustain the seven-month stock rally. Financials came under heavy pressure after an accounting expert projected a $10 billion write-down for Citigroup (C).

The Dow Jones Industrial Average fell 249.85, or 2.5 %, to 9,712.73, The broader S&P 500 index lost 29.92, or 2.8 %, to 1,036.19, while the Nasdaq dropped 52.44, or 2.5 %, to 2,045.11. In other trading, the Russell 2000 index of smaller companies fell 17.45, or 3 %, to 562.77.

Government bond prices rallied and the U.S. dollar rose as money went into lower yielding investments. The yield on the benchmark 10-year Treasury note fell to 3.39 % from 3.50 %. The higher dollar sent crude and other commodities lower. Oil tumbled $2.38 to $77.49 a barrel on the NYMEX for the December contract.

Week in Review

The Dow Jones industrial average closed the week down 259.45, or 2.6 %, at 9,712.73. The Standard & Poor’s 500 index fell 43.41, or 4 %, to 1,036.19. The Nasdaq composite index fell 109.36, or 5.1 %, to 2,045.11. The Russell 2000 index fell 38.09, or 6.3 %, for the week to 562.77.

Goes to Show Government Grew Economy 3.5%

Two major economic reports hit the street in the morning relating to the consumer as we enter the pivotal holiday shopping season. The Commerce Department consumer spending fell 0.5 % last month, the largest drop since December, after a 1.4 % increase in August. The drop matched economist’s estimates as the cash for clunkers program ended.

A dismal job market headlined by a near 10% national unemployment rate appeared to weigh on consumers, as the street saw consumer sentiment for October slipping to 70.6 from 73.5 last month.

We Spent How Much Per Job Created?!

Nearly 650,000 jobs have been saved or created under President Barack Obama’s economic stimulus plan, the government said Friday, and the White House declared the nation on track to meet the president’s goal of 3.5 million by the end of next year.

New job numbers from businesses, contractors, state and local governments, nonprofit groups and universities were released, showing 640,329 positions credited to the stimulus, according to the independent federal board monitoring the program’s progress.

Teachers and other education employees represent the largest number of jobs in the report — about 325,000. With state budgets in crisis, federal aid helped governors avoid major cuts in education, which officials said spared many teachers and school workers from the unemployment line.

Wow, so we spent about $200,000 per job assuming that the White House target of 3.5 million is hit. We will get an indication of the labor market in the 4th quarter, which is typically extremely weak on Friday in the premarket with the October Employment Situation; brought to you by the lovely folks at the Labor Department.

Market Summary

Stocks fell for the fourth straight day on Friday as weak jobs data gave more evidence the economic recovery would be less robust than expected. The decline marked the second consecutive weekly loss for Wall Street, and not the most encouraging of starts to the fourth quarter.

The Dow Jones industrial average fell 21.61 points, or 0.23 %, to close at 9,487.67. The Standard & Poor’s 500 Index dropped 4.64 points, or 0.45 %, to 1,025.21. The Nasdaq Composite Index lost 9.37 points, or 0.46 %, to 2,048.11. Stocks were down well over 100 points after the release of the report, however buyers entered the market, propelling the S&P to hold 1015 claw its way to only modest losses.

September Employment Situation

Employers cut 263,000 jobs from their payrolls in September after cutting a revised 201,000 in August, the Labor Department reported Friday morning. Economists were expecting 175,000 jobs cuts. The unemployment rate, generated by a separate survey, rose to 9.8%, a 26-year high. That was in line with economists’ forecasts and up from the 9.7% rate in August.

It seems as though the release of the report, which is the first Friday of the month, always gets investors thinking whether the rally in the market is justified based on the current employment reality. Since the March lows, the S&P 500 has gained 51.2%, the Dow has gained 45%, while the Nasdaq has gained nearly 61%.

In addition, factory orders plunged in August versus forecasts for a rise. The Commerce Department said factory orders fell 0.8%, following a rise of 1.4% in July.

You will hear more and more now of a double dip recession, where we will see positive growth in the last 2 quarters of 2009, led by government spending; then a decline back into negative territory.

A decline on Wall Street turned into a sharp selloff in the final minutes of trading Thursday, sending the market to its worst day since the beginning of the 3rd quarter. The Dow fell 203.00, or 2.1 %, to 9,509.28. The broader Standard & Poor’s 500 index lost 27.23, or 2.6 %, to 1,029.85, and the Nasdaq composite index dropped 64.94, or 3.1 %, to 2,057.48. The Russell 2000 index of smaller companies declined 20.53, or 3.4 %, to 583.75.

Morning Outlook

Yesterday’s selloff spilled over into the premarket this Friday morning ahead of arguably the most key piece of economic data. This economy needs the consumer to spend, and until the job market improves, it won’t happen. We broke 9500 with the blue chips; will we test 9200 in the coming days if we get a poor reading? Is 1000 safe on the S&P?

Dow futures are down 34, or 0.4 %, at 9,437. Standard & Poor’s 500 index futures are down 3.10, or 0.3 %, at 1,024.30, while Nasdaq 100 index futures are down 2.50, or 0.2 %, at 1,668.00.

Economic Calendar

8:30 AM
Employment Situation: The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation’s business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls.

Analysts expect 170,000 jobs to have been cut in September, while the unemployment rate rises from 9.7% to 9.8%.

10:00 AM
Factory Orders: Represent the dollar level of new orders for both durable and nondurable goods. The consensus is for an increase of 1% for the month of August, following a 1.3% rise in July; led by durable goods.

Market Summary

So we have the good news, the pace of job losses slowed to their lowest level in a year. However, 6.9 million people have lost their job since the recession began, and we are still months away from having a net job gain. The economy needs to create roughly 125,000 jobs per month.

Wall Street rode high into the long holiday weekend. After a brief back and forth in the premarket, stocks opened higher and stayed positive throughout the session. The Dow rose 96.66, or 1 %, to 9,441.27. The Standard & Poor’s 500 index rose 13.16, or 1.3 %, to 1,016.40, while the Nasdaq composite index added 35.58, or 1.8 %, to 2,018.78. The Russell 2000 index of smaller companies rose 8.01, or 1.4 %, to 570.50

Nine of the ten sectors that make up the S&P 500 fell for the week, led by Financials which declined 3.59%. Consumer Staples was the only sector in the black, positive by 0.56%.

Energy didn’t react as positively to the jobs number, as less bad still isn’t good. Light, sweet crude rose 6 cents to settle at $68.02 a barrel on the New York Mercantile Exchange.

August Employment Situation

U.S. employers cut 216,000 jobs in August, while the unemployment rate rose to a 26-year high. The Labor Department reported the unemployment rate rose to 9.7 % (9.657% to be exact) after dipping to 9.4 % in July and the decline in payrolls was the smallest in a year.

The department revised job losses for June and July to show 49,000 more jobs lost than previously reported. Analysts had expected the unemployment rate to jump to 9.6%.

Its Saturday AKA Roundup of Bank Failures

The number of banks that have failed this year stands at 89 after regulators on Friday shut down banks in Missouri, Illinois, Iowa and Arizona.

The Federal Deposit Insurance Corp. took over First Bank of Kansas City, which was based in Kansas City, Mo., and had $16 million in assets and $15 million in deposits. It shut down Sioux City, Iowa-based Vantus Bank, with $458 million in assets and $368 million in deposits.

The FDIC seized two banks in Illinois: Oak Forest-based InBank, with $212 million in assets and $199 million in deposits, and Platinum Community Bank in Rolling Meadows, which had $346 million in assets and $305 million in deposits.

First State Bank in Flagstaff, Ariz., also was shuttered. It had $105 million in assets and deposits totaling $95 million.

All totaled, the latest failures will cost the cash strapped fund of the FDIC some $400 million.