Friday, January 07, 2011

TRUTH OR CONSEQUENCES

This does not look like prior recoveries.



WASHINGTON (AP) -- "The government is expected to report Friday that businesses stepped up hiring in December, a trend likely to gain momentum in 2011.

Economists are predicting that employers added a net total of 145,000 jobs last month and that the unemployment rate dipped to 9.7 percent.

Some are even more optimistic after a private payroll firm estimated this week that companies added nearly 300,000 jobs in December. Also encouraging was a report that fewer people applied for unemployment benefits over the past month than in any four-week period in more than two years.

A decline in layoffs has consumers feeling better about the economy and spending more freely. This past holiday shopping season was the best in four years "


Actual jobs added were 103,000 almost HALF the median GUESS. BUT unemployment rate dropped from 9.8 to 9.4% !!! something amiss there. Many went OFF the NOV. rolls as their 99 weeks ran out......now they don't get counted...bravO!


Workweek unchanged, but wages are seen higher in 1st qtr as tax cut kicks in, may add to consumer spending. May add to an UPSIDE GDP report next qtr....all this priced in IMHO but could extend rally and give bear little hope.




Contrary Investor "at any rate" Jan read.


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