Of course, this positive data does not indicate that a significant number of jobs are being added to the economy — just that the economy is not hemorrhaging them at near the rate we have been seeing throughout the recession. But the news is still encouraging, as it indicates a certain measure of stability in the jobs market, and in the economy. With fewer jobs being lost, there is hope that consumer confidence will return, and with it the important economic driver of consumer spending.

Initially, the stock market rallied heavily on the news. However, other considerations are now taking precedence, and the stock market has pared its gains rather dramatically as mid-day approaches.

Image source: Daylife

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U.S. Unemployment Rate Drops

Dubai isn’t that big a deal

While the reaction on Friday to Dubai’s possible debt problems was huge, over the weekend, investors realized that U.S. direct exposure to Dubai markets isn’t that big. Additionally, the UAE promised to provide funding for Dubai banks, and things appear to be relatively contained for now. That has some investors breathing a sigh of relief.

Cyber Monday might make up for Black Friday

The other issue giving investors pause this morning is the lackluster sales performance on Black Friday. Yes, sales were higher than last year. But only just higher. And individual spending on Black Friday was down. This indication that consumers are still holding back has some investors concerned about economic recovery, since consumer activity is such a large part of economic activity. However, there are hopes that today, Cyber Monday, will make up for it as consumers look for online deals.

In the end, though, it is clear that investors are mostly waiting. They are waiting for indications of how the holiday shopping season will go, and for indications about how bad things are in Dubai.

Image source: Imre Solt via Wikimedia Commons

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Stocks Continue to Struggle On Dubai, Sales

As one might imagine, investors latched onto this news and took it as a cue to sell the dollar. After seeing gains for the dollar last week, Bullard’s remarks prompted a round of profit taking. Additionally, the comments also helped stocks. Confident that the Fed is willing to continue propping up Wall Street, investors are in a buying mood, sending the stock market higher an hour and a half after opening. The gains do appear to be slowing, though, as day traders swoop in to take their profits from earlier.

However, this week is expected to be a good one for stocks. Investors are hoping that the holiday shopping season, which kicks off with Black Friday the day after Thanksgiving, will help provide some fuel for the fire. With a short trading week, and the news so far good, it looks as though this week, at least, will be a good one for the stock market. We’ll see if it holds if Black Friday turns out to be a disappointment.

Image source: Fletcher6 via Wikimedia Commons

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James Bullard Helps Stocks, Destroys Dollar

Wall Street is hopeful that policymakers will continue to prop up the big companies, and focus on helping the banking system retain its stability. Investors will also be waiting to see what sorts of the things the Fed is mind for ensuring that the economic growth seen in the third quarter will be sustainable. Also of interest is how Bernanke and the rest of the Federal Reserve members plan to withdraw from the stimulus.

Withdrawing from economic stimulus is an important consideration for many, since it will be a delicate maneuver. If the stimulus measures are in place for too long, we could end up with hyper inflation and a number of other distressing economic problems. On the other hand, if economic stimulus is withdrawn too soon or too quickly, the economic recovery could be in danger, and the chances of a double-dip recession increase. With employment still an issue, and the housing market still reliant on the first time home buyer tax credit, though, it is unlikely that an exit from the stimulus will begin until sometime next year.

Image source: Daylife

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Stocks Heading Higher Ahead of Fed

Right now Google’s just got internet advertising and starting to expand into some print and radio advertising options, plenty of room to expand into the mainstream advertising areas we’re already familiar with around us.

Source: Google worth more than half a Microsoft on Scobleizer

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I’ll Trade You Half of Microsoft for Your Google